This one:
http://finance.yahoo.com/calculator/retirement/ret-02says that I need to save between 3.4 and 7.1 percent of my gross salary to have a comfortable retirement, not counting social security or anything.
Not that I believe it, of course.
Right now I'm saving 15%, though I'm not quite sure what will happen when, sometime next year, that amount begins to exceed the amount I'm able to put into a Roth IRA. I would like to open a taxable mutual fund account in a tax-efficient index fund, but I worry that the small amount I'm able to invest in it every year would make it not worth the fees. After the Roth limit goes up to $5000, I would only be able to invest $1000/year outside of it, and not only does the fund I'm considering have a minimum of $3000, but it has low-balance fees up to $10,000. Only $10/year, but, you know, it adds up.
We'll see; it's not something I have to consider seriously at the moment.
And no, no 401(k) at work. If that becomes available within the next two or three years, that could change my plans too.
January 20th, 2007 at 01:48 pm 1169300921
January 20th, 2007 at 07:34 pm 1169321665
I think the general rule of thumb I here lately is save 20%. That's what it predicted spot on and what I am saving. 20% for $4 mil at age 65 to live on (I assumed a much lower rate of return when reitiring though & that we would live longer too).
I like how it indexed salary for inflation and present value of my salary at 65, etc.
OF course personally to me 20% is the very least I would save. Will save much more.
I thought it was a good tool though overall - showing how if you wait longer to start saving, you have to save more every year.
January 28th, 2007 at 02:18 am 1169950693
ttp://www.nytimes.com/2007/01/27/business/27money.html?em&ex=1170046800&en=a25e7d6c72b62252&ei=5087%0A