Sunday, August 16, 2009
Maybe you can retire earlier than you were told -- just maybe
Jonathan D. Pond has an upbeat article on the AARP website, “Sure, You Can Retire.” He gives some calculation matrices for determining what percentage of your working income you actually need in retirement, and comes out with more optimistic results than the usual 80-110%.
The link is here.
He doesn’t take into account how demographics and the financial shenanigans, of the recent past can complicate things. What about long term care insurance for yourself? What if your adult kids move back and are saddled with student loans. What if you’re part of the “sandwich generation” and even in your 60s yourself have eldercare issues that have come about with rapidly increasing longevity?
It’s more complicated that this piece makes it look.
Update: Monday Aug 17
AOL walletpop has a story by Mary Beth Franklin from Kiplinger, "Repair, Rebuild, Retire" here. The leadin says, the worst is over, so you can repair your 401K now.