Quote Of The Week: Are You A Retirement Savings Couch Potato?

cat couch potato“Stuart Ritter, a financial planner at T. Rowe Price, likens saving 3 percent to going to the gym for six minutes; you’re not going to whip yourself into shape.

A 9 percent deferral rate, then, is akin to a still sub-par 18 minute workout.

Ritter points out that at a 9 percent deferral rate the odds of your money lasting to age 95 is less than 40 percent.

His advice: save at least 15 percent of your pre-tax salary. At the very least, give yourself a much bigger cushion if your plan to keep working doesn’t work out as planned.”

Carla Fried, Retirement Roadblock: The Dangers of Magical Thinking,” May 20, 2103, Bloomberg News

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!
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