Dalton — What’s your number? I know you’ve thought about it—the size of the investment portfolio you’ll need to feel comfortable retiring. According to a recent Charles Schwab survey of 1,000 401(k) plan participants nationwide, the number is $1.7 million. Here is where I’m supposed to tell you what you already know—that if you start investing about 10 to 15% of your salary when you’re in your 20s, you’ve got a good shot at hitting that number. Thank you, compound interest. But if you wait until you are my age, mid-40s, then you’ll have to save about one-third of your income to have a good shot at hitting that number. Blah, blah, blah. You’ve read that a hundred times. Let’s talk about what people don’t know: that they have absolutely no idea if that number, their number, is the right number.
Insights & Advice
More Articles
The IRS has its hands full this year
by Bill Schmick
The government’s partial shutdown has everyone on edge this year. Despite assurances from the powers that be, many taxpayers are concerned that their tax returns won’t be processed on time. Should you be worried?
Conditions are ripe for further upside
by Bill Schmick
The markets needed a break. Overbought, extended, and tired of buying, traders took a time out this week. It is a necessary part of the market equation. Two steps forward, one step back. Now that we have...
Europe, the world’s sick sibling
by Bill Schmick
The European Community is beset by worries. Brexit, trade threats, a slowing Chinese economy, and internal politics at home have all conspired to slow growth, employment, and positive sentiment.