Retire Later and Reap the Rewards
You're 50, earn $100,000 a year, and have $600,000 in your 401(k). You want
to retire at 65 with a retirement income of $80,000 annually, adjusted for
inflation but excluding Social Security. If you invest conservatively, what is
the chance you'll reach your goal? And how much of a difference would it make
if you invested more aggressively, boosted your savings rate, or postponed
retirement to 70?
SAVINGS RATE/ASSET MIX CHANCE OF MEETING YOUR GOAL / RISK LEVEL*
RETIRE AT 65 RETIRE AT 70
------------ ------------
Save 10% of salary in 401(k) 34% / 9% 75% / 9%
Invest 63% in high-quality bond fund,
37% in equity-income fund
Save 10% of salary in 401(k) 51% / 12% 80% / 12%
Invest 37% in high-quality bond fund,
63% in equity-income fund
Save 30% of salary in 401(k) and
other plans 82% / 20% 97% / 10%
Invest 50% in equity-income fund,
50% in small-cap growth fund
*There is an estimated 1 in 20 chance of your losing at least this much of
your retirement assets in the next 12 months if markets perform poorly.
DATA: FINANCIAL ENGINES INC.
RELATED ITEMS
 - INTRODUCTION
- COVER IMAGE: How to Retire
- THE NEW MATH OF RETIREMENT
- TABLE: Asset Allocation Helpers
- TABLE: Retire Later and Reap the Rewards
- THE GODFATHER OF INDEX FUNDS
- MAKING THE MONEY LAST--AND THEN SOME
- TABLE: How To Keep Your Income Flowing
- TABLE: Reverse Mortgage Resources
- FUNDS THAT CHANGE WITH YOU
- TABLE: These Funds Follow You to Retirement
- BW/HARRIS POLL: NOTHING RETIRING ABOUT THESE RETIREES (extended)
- ONLINE ORIGINAL: COVERING THE HEFTY TAB FOR LONG-TERM CARE
- ONLINE ORIGINAL: A TALK WITH TIAA-CREF'S INVESTMENT HONCHO (with audio)
- ONLINE ORIGINAL: FOR INVESTORS: A STOCK THAT COULD RIDE THE AGE WAVE
- COMMENTARY: WHAT'S LEFT FOR THE LATE-BLOOMING BOOMER?
- CHART: A Looming Threat to the Stock Market?
- WHERE SILVER-HAIRED SURFERS BROWSE
- TABLE: Net Resources If You're Retired...Or Thinking About Retirement
- PRODUCTS THAT MAKE LIFE USER-FRIENDLY AGAIN
- TABLE: It's Not All High-Tech
- WHEN A HOME NEAR THE FIFTH HOLE ISN'T ENOUGH
- TABLE: Making Your Move Online
- TABLE: College Towns
- TABLE: Job Meccas
- TABLE: Urban Hot Spots
- FAR FROM THE TOUR-BUS CROWD
- TABLE: Mapping Out Adventure Travel
- FOR ATHLETES, THE GLORY DAYS AREN'T OVER YET
- TABLE: Want To Compete? Here's Where to Start
- LATE-BLOOMING SCHOLARS
- TABLE: Advice to the Senior Class
- ONLINE ORIGINAL TABLE: States That Give Senior Students a Break, or Not
- FIRST STEPS TO A SECOND CAREER
- TABLE: Online Career Assistance
- ANYONE WANT TO LEND A HAND?
- TABLE: Helping Others
- COMMENTARY: JIMMY CARTER: THE BEST YEARS OF OUR LIVES
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