Monday, October 14, 2019
MarketWatch published an article last week on the amount of money you need to have for your retirement, If you want to have enough money when you retire, you need to know this. "Calculating future savings requires numerous factors, including current age and predicted retirement age, any current assets, how the portfolio is invested and at what rate a person can realistically expect that money to grow. The latter, known as a “rate of return,” includes inflation, interest and dividend payments, and many experts disagree on what individuals can anticipate that rate to be." There are various views regarding the percentages needed for the rate of return and there are a couple of ways to reference it, the article explains.
As with most other facets of retirement planning, an assumed rate of return can be different from one person to the next, said [one advisor]... The reality is that it is almost entirely dependent upon your own personal allocation....” Many advisers also have their own way of creating projections, and will show clients a few estimates — from conservative to aggressive — when making a financial plan. “There is no one perfect number to use....”
Still, investors may want to err on the conservative side, as it’s better to save too much than end up in retirement with too little.... And investors, especially younger ones, should not be chasing returns.
Bottom line, you need to start saving (the earlier the better) for your retirement if you plan to retire