Tuesday, March 9, 2010

Retirement Calculator

Interesting article on the Money Magazine site regarding the fact that 43% of American workers have less than $10,000 in retirement savings. I'm hoping that the bulk of those folks are very young and have time to save.

While reading the article I ran my numbers through the retirement calculator and was told that I needed to be saving @$25,000 a year. [I'm not sold on the rules they use but I gave it a go.]. Right now, I'm doing my best to max out my 401k at $16,500 and my IRA at $5,000. So, at present, I am short $3,500 for retirement savings although we are saving other monies for other goals so perhaps we could divert more of our savings to retirement.

On the other hand, Mr. Sam only needs to save @$11,300 according to the calculator so he is saving $10,000 more per year than he "needs" to. Maybe he'll be kind enough to lend me some cash when we are 65.

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