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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75627  
Subject: Re: Retirement savings benchmark Date: 1/18/2013 1:20 AM
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dozer183e asks,

Not sure if this is the right board for this, but at least some here should have a thought on this. Interesting article about people tapping into 401(k)s early for emergency matters. http://www.nbcnews.com/business/more-americans-raiding-401-k......
But there is quote about saving for retirement in there:

...Experts also advise that at age 35, you should have at least a year's salary in your 401(k) or IRA. By age 45, three years' salary. And by retirement at age 67, you should have at least eight times your salary socked away.</>

Just wondering what you all thought about that rule of thumb.

</snip>


A lot of people use the 4% rule, which means you need a portfolio 25 times the size of your annual retirement withdrawal.

Eight times your salary only works if you can live on 1/3 of your income (plus Social Security and pension.) When I retired back in 1994, I was living on 1/4 of my last year's salary.

intercst
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