[PA2SK]

Terrible article.

"65 years old and earn $115,000 a year. That's a decent annual income, but it's no king's ransom. It's enough to let you sock away good chunks of money each year. But it's not so high that it trips over income limits when it comes to saving in a retirement plan such as a 401(k)."

There is no income limit on 401k contributions. Can be making $1 million a year, doesn't matter.

"You can get closer to that goal by investing more aggressively than is recommended for a retiree. Instead of a 70-30 stocks-bonds mix, you could boost your stock allocation to, say, 100%. Vanguard investors investing 100% in the S&P 500 earned just shy of the bogey's 8.5% average annual return."

That's average return. If you're 100% stocks and there's a recession you could see half your portfolio wiped out and could easily be 5 years before you make it up. That's bad news if you have to make withdrawals for living expenses. You'll be eating into principal and never recover. Sustainable withdraw rate is 3% to 4% a year and you should be mostly in bonds. This guy is giving really dangerous advice.

If you have $1 million in your retirement account you should figure on $40,000 a year plus SS as your income and fit your lifestyle around that. Should not be too difficult in most parts of the country.

[riverdawg]

“Sustainable withdraw rate is 3% to 4% a year and you should be mostly in bonds.”

This withdrawal rate may be appropriate if you are “mostly” in bonds, but that plus SS won’t generate enough income out of $1,000,000 for most people used to a $115,000 pre-retirement income to live on comfortably in retirement.