top of page

How much should you save for retirement? | NEWS.GNOM.ES

Writer's picture: Steve MartinSteve Martin

One time-honored rule of thumb suggests that should save 10% of your income for retirement. But that percentage might be too high or too low for many people saving for retirement, according to a new study.

Indeed, your saving rate should be based on your household income, what probability of success you want, and the age at which you start saving according to Dimensional Fund Advisors, a mutual fund firm based in Austin, Texas.

“It is important to note that simple rules of thumb do not work for many people,” wrote the authors of the paper, Massi De Santis, a senior research associate at DFA, and Marlena Lee, a vice president on DFA’s research team. “When planning for retirement, income uncertainty can be substantial, so a one-size-fits-all solution is unlikely to work.

”Why do investors take risks?

MarketWatch’s Chuck Jaffe was recently asked a question so simple it startled him. He joins MoneyBeat to discuss.

In an interview, Lee said the saving rate that works well on average does not work well for people with steep income trajectories or high income variation over their working life—the very people who may need to rely more on personal savings.

1 view0 comments

Recent Posts

See All

Comments


Purposeful Financial and Legacy Planning

Fee-Only Financial Planning

(970) 443-1873

3400 Rosestone Ct, Fort Collins, CO 80525

  • Facebook
  • Twitter
  • LinkedIn

©2020 by Purposeful Financial and Legacy Planning

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY 'LINKED' WEBSITE.

All domestic and international rights reserved. No part of this website, including text, graphics, et al., may be reproduced or copied in any format, electronic, print, et al., without written consent.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CERTIFIED FINANCIAL PLANNER in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

bottom of page