Thursday, July 25, 2013

Retirement Non-sense STAY AWAY FROM IT!

Middle-class Retirement Non-sense 

Middle-class Americans with an average age of 50 years old  say they will need a median of $300,000 to retire. However the same individuals say that, to date, they have saved a median of $25,000.

What is going on here?
Assuming a retirement age of 66 years, they have 16 years to save $275,000. If you assume
that the stock market goes up 5 percent per year--perhaps not the safest assumption one could make--then to hit that savings number, they need to save $11,070.69 per year, or 22.1 percent of the median income. However, 68 percent of middle-class Americans who have a 401(k) plan contribute 10 percent or less of their income to retirement.

The GOOD NEWS is that you do not have to end up stuck in such a situation.

Please call me for a FREE evaluation of YOUR specific financial situation,

Jesse Alvarado
(562)822-5565

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