Retirement Math Made Simple…Expanded Edition

There are dozens, hundreds, probably thousands of retirement calculators out there. Some are simple and bake in common assumptions. Others let you drill down into every fine detail customizing the calculation to your exact criteria. But one I found wasn’t a calculator at all. It was a spreadsheet that asked you one simple question, What is your savings rate? The blog post comes from Mr Money Mustache and his article The Shockingly Simple Math Behind Early Retirement Continue reading “Retirement Math Made Simple…Expanded Edition”

Retirement Concerns

I wrote this article knowing full well that I’m going to sound like a broken record but I believe the subject matter is to important to ignore. Last week I wrote an article about the impending insolvency of Social Security and pointed out why it is so important to save for your own retirement. Basically, why you should never depend on the government for your retirement security. Then this week I saw two Bloomberg articles that caught my eye. Continue reading “Retirement Concerns”

End of the Road

The 2017 report from the Social Security and Medicare trustees was released a few days ago. The good news is that payouts in 2018 will see their first significant bump in years, 2.2%. Bad news is that the impending insolvency of these programs is still looming on the horizon. Ironically, 100 years after the program began it could face the issue of not being able to fulfill it debts to the public. Continue reading “End of the Road”

Retirement Concerns

What are your biggest retirement worries? I thought for many the biggest fear would be never having the ability to retire. Merrill Lynch and Age wave conducted a new study on retirement savings and found that 1/3 of all adults have $0 in retirement savings. None, they haven’t even begun the journey. Another 23% had less than $10,000 saved. No wonder the hope of retirement is a fading dream for many and also why I thought that would be the biggest concern. I was wrong, not being to retire wasn’t the biggest concern. Continue reading “Retirement Concerns”

Good News for Retirement Savings

I talked about it before, when it comes to saving for retirement, time matters. According to Chase Bank, Baby Boomers began saving for retirement at age 40, Gen X began at age 30 and Millennials began at age 23. This is a big deal. The earlier you start saving, the more time your savings has to multiply. It gives more room for the rule of 70 to work its magic. Continue reading “Good News for Retirement Savings”

Is Your Net Worth Average?

One of my most read and most popular blog posts I’ve written was about the average retirement account size by age group. Instead of just looking at retirement accounts, I want to look at total net worth as well as debt. In 2011 the US Census Department took their latest gauge of Americans net worth as well as their debt levels. Even though the census bureau collected this information right after one of the worst recessions in US history, I still believe the results are worth looking at. Continue reading “Is Your Net Worth Average?”

Change Your Future With a Dollar

I wrote an article in July showing the power of time and compound interest if you would invest your pocket change. Now I want to show you what can happen if you invest your dollar bills. Why? I want everyone reading this to understand something. Yes saving is hard, I realize that. But small amounts of money can add up over time. I don’t what people to think that unless they have thousands of dollars a year to save, they will never reach their goals. Time and compound interest are your friends. The more time you have, the more magical compound interest becomes. Remember, save early, save often, save whatever you can. So lets get to this weeks examples. Continue reading “Change Your Future With a Dollar”

The Greatest Retirement Loss…Fees

Fees come in all sorts of shapes and sizes when it comes to your retirement savings. Everyone wants a piece. At the end of the day it can feel more like your saving just to profit financial institutions and the government. It can be incredibly frustrating but it is just a part of life. You have to try your best to limit and avoid these fees at all cost. Otherwise your savings will be eaten away and strangled by the crushing weight of the following fees. Continue reading “The Greatest Retirement Loss…Fees”

The Greatest Retirement Gift…Time

I try my best to not give generalizations when talking about retirement savings. You will hear all sorts of numbers thrown around. For example, you need a million dollars saved by the time you retire. Or you need to save 15% of your income each year. Or you need to base your retirement savings on a 4% withdrawal rate once you retire. These are common suggestions that we hear but I personally find most of these generalizations to be rubbish. Continue reading “The Greatest Retirement Gift…Time”

The Retirement Dilemma

There are so many issues and numbers I want to discuss in this article that it can be daunting. But the statistics will show, we all need to do more to plan for our retirements. Who knows how much longer Social Security and Medicare will be around and even if they are around when you retire it won’t be enough. Hoping that these two programs will provide for all of your needs is the pinnacle of madness. A recent survey by Bankrate showed that the number one financial regret most people have is not saving enough for retirement. Continue reading “The Retirement Dilemma”