5.25.2011

Advice for Future Retirees - Don't undersave!

How to handle market declines early in your golden years.

Excerpt:

The adage for a vacation is to take half the luggage and twice the money, since people know it is not unusual to spend more than planned.

The same applies to the size of retirement portfolios. The best advice is to retire with a portfolio that is worth more than you think is necessary, rather than with a portfolio that will last only if everything goes exactly right.

Comment: I was talking to a retiree at church this past Sunday. The man retired at 62 almost 9 years ago. He lamented that the money was very tight for them.

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