How to Calculate Your Retirement Number

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If someone follows these recommendations and saves 18% of an 80k salary, that leaves only 65000 left in their best year. They need 80% of their preretirement income to retire, according to this, so that's 64k. Huh? That's basically 100% of their previous after retirement savings budget. I would hope they will have less expenses in retirement (ie less gas, car expenses, insurance, etc.)

Dude McGruber of ID 9:50PM October 07, 2012

what's a penitily?

Dude McGruber of ID 9:30PM October 07, 2012

Perhaps that is why the Government is steadily trying to raise the eligible age of 65 for Social Security to age 70! "It reduces the number of years you have to support yourself!"

Fanni of PA 2:40PM February 15, 2012

Investing for the long-run is NOT rocket science, but, it does take a strategic investment plan and the will and resolve to stick with it and "stay-the-course" as the familiar Vanguard mantra states. With a strategic asset allocation between stocks/bonds/commodities/real estate/cash and a periodic re-balancing, those with the perseverance to stay with the plan can surmount and avoid the emotional whipsawing that the market inevitably delivers. Again, it is not rocket science, it is actually more common sense, and the realization of a few key investment realities, namely, low costs do matter to long-run returns, the vast majority of actively managed accounts cannot surpass the long-run returns of broadly diversified market index funds, and, very, very few people have the skills or luck necessary to "beat-the-market" consistently over the long haul.
Ken Derow

Ken Derow of PA 10:02AM February 15, 2012

My partner wants to cash in his retirment for a lump sum and buy a home for cash in another
state , he is 60 years old and we live in the home that we are buying but won't be able toafford to keep when he retires from work in about 5-6 years.My question is can this been done and what are the penitilies?

Carol of CA 9:25PM February 04, 2012