Asked by Tova  |  Submitted January 17, 2015

How much a year would I have to start saving at 35 to be financially secure when I am in retirement (70)?

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  Answers  |  3

January 17, 2015

This is an excellent question, Tova, and one which more 35-year-olds should be asking, especially since there are no guarantees that Social Security will be there for you in 35 years. The answer is dependent on many factors, including what kind of savings vehicle, what rate of return, taxation and inflation, not to mention how you define "secure." For example, your cost of living and what it takes to be financially secure in Harlingen, Texas is totally different than what it would be in... well, Orange County, California.. Most advisers would tell you that if your income is $65k, you'd need to save 17% to have $2.2mil at 70, which is what you'd need in typical scenarios.

$commenter.renderDisplayableName() | 05.27.17 @ 13:58

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March 17, 2016

Hey Tova,

Define 'financially secure?" What is your number? Meaning how much do you need to enjoy your lifestyle until? I can easily help you with this. Send me a message and no obligation.

Here are some scenarios for a 35 yr old retiring at 70 (35 yrs)
A $100K portfolio will double six times to become $1.6M Using @12% CAGR
A 100K portfolio will double two and a half times to become $600K using a market CAGR

It's not what you make, It's what you keep that determines your lifestyle.

Correction, a $100k portfolio that doubles 6 times using a 12% CAGR results in $6.4Million. My answer was too conservative. Just give some back if this is too much for you.

$commenter.renderDisplayableName() | 05.27.17 @ 13:58

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June 02, 2016

Start with the max you can put into your 401(k) and Roth and let it work itself out. Nothing else you can really do other than be debt free and pay off your house as soon as possible.

$commenter.renderDisplayableName() | 05.27.17 @ 13:58

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