Donna Rosato of Money magazine poses 8 questions to let readers measure whether they are as “financially secure” as they think.
Take the quiz to see if you’ve really covered all the bases. Are you as prepared as you can be?
Among other topics, Rosato asks about your emergency fund, how long you expect to work, how much you contribute to your 401(k), how much life insurance you need, planning for future medical expenses, and setting up a trust.
Here are a few of the most relevant points (hey, no peeking until after the quiz!):
- If you save 10% of your income each year and retire at 65, the likelihood of your money lasting until age 95 is only a slim 40%. To give yourself a fighting chance, you need to save at least 15%. (See our blog post on this topic).
- Think you’ll work until age 65 or later? For many people, they’ll need to think again. Many workers are forced to retire earlier due to health problems, layoffs, or failing skills. That could be a problem if you’re counting on “working forever” to make ends meet.