RETIREMENT SAVING RATIO, INVESTING - YES OR NO? | Summary and Q&A

TL;DR

Saving for retirement is important, but it may not be worth sacrificing your present happiness and financial freedom.

Key Insights

• 🧑‍🏭 Retirement planning should consider more than just financial factors - finding work that you love can provide long-term fulfillment.
• 😘 Saving 50% of your salary may not be realistic for most individuals, and the average savings rate in the US is much lower.
• 🍉 The return on investment is important, but consistent savings and avoiding withdrawals are crucial for long-term financial security.

Transcript

good day fellow investors last weekend the story was all about the royal wedding however in the personal finance world as Megan Markel is 46 it went about how much should you have saved up till you are 45 and then as Fidelity's number is two salaries up till 45 a lot of comments were related to that it's easier to marry a British Prince than to hav... Read More

Questions & Answers

Q: Is it really necessary to retire at 67?

The idea of retiring at a specific age may not be appealing to everyone. It's important to consider finding work that you love and that brings you happiness instead of solely focusing on retirement.

Q: Can saving 50% of my salary realistically lead to a comfortable retirement?

While saving 50% of your salary may not be feasible for most people, it is crucial to find a balance between enjoying your present life and saving for the future. It's essential to find a savings rate that works for you and still allows room for enjoyment.

Q: How important is the return on investment in retirement planning?

While the return on investment is crucial, the key factor in retirement planning is the discipline of consistently saving and investing over time. It's important to avoid withdrawing funds for unplanned expenses and to focus on long-term financial security.

Q: What are the potential drawbacks of starting retirement savings later in life?

Starting retirement savings later means missing out on the benefits of compounding interest and potentially needing to save a larger percentage of your income to catch up. It's important to consider the consequences of delaying savings and the impact on your future financial stability.

Summary & Key Takeaways

• Fidelity's recommendation is to save 2 times your salary by age 45, aiming for 10 times your salary by age 67 for a comfortable retirement.

• The goal of retiring at 67 may not be ideal for everyone, and finding a job you love may be a smarter approach to financial security.

• Saving 50% of your salary is difficult for most people, and the average savings rate is much lower, which raises questions about the feasibility of Fidelity's plan.