So Fidelity has that handy tool to show you how they think your retirement savings are going. Of course despite knowing that I’m better off than 90% of the US population, it says I’m way behind on retirement… but of course the more in my retirement account, the more money my investment firm makes.
Okay, so despite being 40, and having over 500K in my retirement, fidelity thinks I’m in fair shape, and almost in the dangerous red zone (where we stop caring about retirement… how clever of them).
Wow, so at retirement (age 65) they think I will have nearly 2 million dollars (2041). They think I’ll need 11K a month (which may not be that far off given inflation). This would leave me with a shortfall of 1300 dollars a month.
Okay, that’s below market. I figured this to about 2.5%. Bump that up to 5% and that turns in to about 3 million (or 2.6 million using what they call ‘above market returns).
So the question is… how do we safely earn 5% over the next 25 years? Swings are okay, but need to end at 65 with a stable portfolio. Hmm….
Debt Sucks 