Looking for a bit of optimism in the face of today’s daily drumbeat of negative news? Look no further than Fidelity’s latest survey on the mindset and recent investing moves of some 1,000 millionaire households. While they too see the myriad short-term risks out there for the economy and investors, they are more upbeat on the market outlook a year from now than at any time in the survey’s five-year history.
To read more about their mindset click here.
So I am not a sales person and try not to be pushy, but I have to share with you some of the results of the recent 2010 Retirement Confidence Survey. The survey shows that 44% of all workers in the US just took a guess (is this a random guess?) at how much money they needed to save for retirement! The next statistic is even more concerning. Almost 30% of Households with annual income of $75,000 or greater thought they only needed $500,000 or less for retirement!
There is a rule of thumb that says you can withdraw about 4-5% of your portfolio per year throughout retirement. This would mean that at 5% the household would only be drawing $25,000 ($500,000 * 5%) a year from their portfolio! This would be a HUGE decrease in standard of living!
If you don’t know how much you should have saved, find a planner at www.napfa.org
Source: http://www.ebri.org/pdf/briefspdf/EBRI_IB_03-2010_No340_RCS.pdf (check out page 23)