Wednesday, January 20, 2010

Am I saving enough for retirement?

Probably not. A good guideline is that you will need to sock away 12 times your annual salary by the time you retire. A guy earning $60,000 a year will thus need to save $720,000 by age 62. And the average employee is not on track to hit that goal.

If you’re not saving, you’re totally screwed. For people who don’t feel equipped to pick the right mix of funds, a target-date portfolio is recommended. You can tell the fund company when you will retire, and it adjusts your portfolio to more conservative investments as you approach nirvana.

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