Quote:
Originally Posted by Mormon Red Death
I up my retirement 401k% to 12.5% of my gross. I been only at 5% for the past several year so 12.5% should really jumpstart my nest egg.
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Best thing anyone can do for their retirement--increase their savings. Forget about fancy investment schemes or stock-picking. Just invest 10+%.
Check these numbers out...
Your savings, if invested in a fairly aggressive index fund (90-10 or 80-20 stocks-bonds) should double in real value about every ten years (assumes 10% returns with 2-3% inflation). Thus, in about 35 years, your 10% this year will be about 100% of your current salary (in real purchasing power). Do this for each of the next 35 years and you have a sort of endowment fund. Your first year of retirement, you save 10% again, which you've already proven you can do, and the cycle starts again.
No one should have to work more than 35 years.
Up the percentage to 20% and you can cut your working years to 25 years.
Anyway, sorry for the digression. Congrats on your decision.