2 questions regarding retirement savings goals / benchmarks?
1) I am a 27 year old male with a college degree (accounting). What is a good figure that I should have saved in retirements accounts at this point in my life. 2) What is a good figured that I should have saved in retirement accounts by the time I'm 65 in order to have a comfortable retirement. Thanks all.
Public Comments
- if you're 27, you won't get full soc sec pmts until you turn 67. Most people have zero saved at age 40. start saving as much as you can after establishing an emergency fund. - as for retirement, depends on how much you want to spend annually when you retire - expecting to live 20 yrs after retirement on average - probably $500k-1 million
- At 27, I'd say that you should already have one half-year's salary saved. If you've been working hard to pay off loans or just paid a down payment on a home, though, I'd cut you some slack. The rule of thumb I use for retirement is what I call the FTI, or "F*** This" Index; the point you can tell your boss that he can take your job and shove it. :-) It's pretty simple: FTI = Age * Net Worth / Yearly Expenses Once it's above 1000, you're probably all set. So at age 65, you need about 16 years worth of expenses (keeping in mind that your expenses at age 65 will be higher than they are now because of inflation). Save 10% of your income every year and invest it in a 401k and in your own home and you'll be able to do it without any problem. Save 20% and you can retire when you're 50, though. :-) Good luck, Doug
