You have to read to the midsection or botton to see why: many boomers started too late with too little. Vanguard now recommends 15% be set aside for retirement.
Boomers Find 401(k) Plans Come Up Short - WSJ.com
Also, I'm not sure who came up with that idea that retirement requires less than your working life. It's very expensive to do the things you waited all your life to do--or in my case, didn't know you wanted to do until you got there. And no, you can't retire early if you are paying off your kids' college loans (or your own), got a divorce in mid-life, still have a mortgage, want a second home, or you want to go out to eat a lot and travel more.
Gen-Xers will have to learn from the Boomers' mistakes: Increase your savings, decrease your want list. Also, real estate is only an investment if you buy it to rent it. If you live in it, it is your home. If it is your home, all those nice things or decor are something to enjoy now, instead of later when you are 65 or 70. If that matters to you, don't complain when the bill collector (disguised as Father Time) comes around.
Monday, February 21, 2011
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1 comment:
Murray sez:
You don't have to go much further than economics 101 to determine how much you should set aside for a comfortable retirement. It basically just takes discipline.
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