Workers Saving Too Little to Retire: http://online.wsj.com/article/SB10001424127887323639604578368823406398606.html?mod=WSJ_hpp_LEFTTopStories
Commentary: This article is a typical news item that is getting rather boring and trite. Of course, we all know that many Americans don’t have enough for retirement. Yet, in this article they show a couple in their 40s who have $200,000 invested for retirement! Well, they still have another 1.5 decades to continue saving and investing. $200,000 is what Dan and I had in our forties too.
Yet, the mantra of “IT’S TOO LATE” or not enough continues. We say that it’s not too late, not with $200,000 or $0.00. While no money saved for retirement at age 50 will be challenging but if you’re motivated you can still have a substantial nest egg by age 65.
Bottom Line: An individual who has nothing saved at age 50 can save over $325,000 by retirement age of 65. Max out your 401k, 403b or 457b of the current max of $17,500 per year earning a conservative 3% return per years will get you about $330,000 by the time you reach 65. How many people have that much at age 65?