How much are you putting away for retirement? And is it enough? On average, Americans participating in defined contribution plans—such as 401(k)s—are socking away only 6.2% of their income every year, according to Vanguard’s “How America Saves 2017” report.
That’s a start, certainly, but it’s probably not enough to build the nest egg you’d like to have at age 70. And consider that 21% of employees who are eligible to enroll in their employer’s savings plan don’t participate at all.
Although financial planners vary when it comes to what people should be saving, many of them believe clients should be saving 20% or more toward retirement. “When clients balk, I remind them that the money has to last a third of their lifetime,” says Judy McNary, a financial planner in Boulder, CO.
Here’s what you consider when setting your own savings rate:
How old are you? The younger you are, the longer you have until you leave the working world (if traditional retirement still exists when you get there). So you can put less away and still achieve your goals through the power of compound interest. “If people start saving at the beginning of their career, then 10% per year should be enough to allow them to replace their final income when they retire,” says Ryan Poage, a financial planner in Kansas City, MO. “The longer they wait, the more unattainable the percentage.”
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- [By Lisa Levin]
In trading on Wednesday, financial shares fell 0.13 percent. Meanwhile, top losers in the sector included Adams Natural Resources Fund Inc (NYSE: PEO), down 4 percent, and Old Point Financial Corporation (NASDAQ: OPOF) down 3 percent.
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- [By Shanthi Rexaline]
Frontline might be evaluating a new tanker company target such as Gener8 Maritime Inc (NYSE: GNRT), away from DHT Holdings Inc (NYSE: DHT), Lewis said. This was substantiated by the fact that Frontline sold 1.7 million shares of DHT in March, followed by 2.4 million shares in April and May. Though Frontline holds about 6.8 million shares of DHT, the Credit Suisse analyst said a deal is unlikely.
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- [By Lisa Levin]
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