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URL:  http://boards.fool.com/if-you-were-to-have-been-from-chicago-you-would-21740916.aspx

Subject:  Re: Only 27, but... Date:  12/11/2004  3:43 PM
Author:  TheBadger Number:  205237 of 749276

If you were to have been from Chicago, you would clearly recognize this phrase: "Vote early, vote often". The same applies to a retirement savings plan --- save early & save often. Further, any plan (which you have) is always better than no plan. That being said, you might what to get familiar with Lotus or Excel and start experimenting with terminal lump sum computations and then backing into a graduated savings rate; e.g. if you want to retire @ age 55 & you expect your salary to be $XX,XXX then; what lump sum would you need @ age 55 to supoort your retirement. Then make savings rate & earnings rate & inflation rate assumptions for all of the intervening years to see if you can get close to the needed result.

What you will most likely learn is that you can not afford to save at a rate now to support your retirement desires. Not to worry. If you use a graduated savings rate say starting @ 10% and going up 1% per year you will get some pretty fantastic results.

TheBadger

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