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Set Up Goal For Retirement And Plan Ahead

Monday, June 3, 2013 - 3:35 PM
From MarketWatch.com:

What you need to retire and how to get there - MarketWatch

"This is a pretty easy number to come by, if dispiriting to some. If you expect to have a relatively safe retirement income of $60,000 a year, you will need $800,000 saved up by the time you retire.

I say dispiriting because not many folks at the edge of retirement are anywhere near that kind of number. (We’ll explain how to get there in No. 2.) For now, assume you will collect, as a working couple, a payout from Social Security of $36,000 a year.

Your income gap is now just $24,000 a year, which you will draw from your retirement savings of $800,000 to close the gap."

Some very simple no-non-sense calculations to come up with the goal (in terms of amount) for retirement savings and how to get there. 

It is also a good indication on how much (in percentage) one should invest in the stock market.  If one has enough (or close to enough) in the retirement porfolio, why take a big risk in the dangerous stock market?
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