About a third of Americans over 40 aren’t saving for retirement, and the vast majority — about 75 percent — aren’t saving as much as they should be. Social security alone will frequently be insufficient to keep up with rapidly increasing costs of living. You need to know and focus on your “retirement number,” which is the amount of assets you must accumulate in order to maintain a desired cash flow over the long term. This means not withdrawing more than 4 percent of your invested assets in any one year to ensure that these assets can last for decades.
Key Takeaways:
- About a third of Americans over 40 aren’t saving for retirement, and the vast majority aren’t saving enough.
- Your all-important “retirement number” details how much money you need to have in order to maintain a desired cash flow during your retirement years.
- You should spend less than four percent of your investment funds within any given year to ensure that they last over a decades-long retirement.
“If you haven’t prepared for retirement properly, those fruits might not be what you’ve hoped for.”
