Posted on 01/08/2012 9:57:57 AM PST by Silentgypsy
high earners need to save extremely high percentages of their income -- as much as 77 percent for the 45-year-old just starting to save for retirement at age 62 -- to produce that 80 percent.
The concept underlying Munnell's paper, and a lot of other retirement planning advice, is that you can figure out how much you need to save once you have a number for that 80 percent replacement rate.
But there's reason to believe that oft-quoted 80 percent figure is wildly on the high side. That, in turn, makes the retirement calculations based upon it also wildly off. And that means if you're trying to save enough money to produce that 80 percent figure, you may be putting away too much, or skimping unnecessarily on the early years of retirement.
(Excerpt) Read more at finance.yahoo.com ...
that I need to learn how to spend again....
Amen to that. I am still living in survival mode. I can’t bear to spend money on myself for fear I will need it as soon as I spend it. I hate that feeling!!!
Call me. I've got spending down pat!! :-)
Which district do you represent?
;-)
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