How can you improve your chance for a succesful retirement?
“one of the best things you can do to improve your chances at a successful retirement is to use a free online retirement calculator”
Wade Pfau, professor of retirement income at the American College, which trains financial planners, has crunched the numbers to find a safe level of saving that would have worked in every historical market stretch going back to periods beginning in the 19th century.
He found that setting aside 16.6% of income and putting it in a diversified portfolio of [60%] stocks and [40%] bonds did the trick every time. (Good news: Employer matches count toward that savings rate.) That’s if you’re consistent about saving over 30 years.
A slow starter must ramp up higher — a 45-year-old with two times salary saved would have to go for 20%.