Posts by Lisa Scherzer

  • How much do you need to save for retirement?

    Yahoo Finance9 mths ago

    How much do you need to save for a comfortable retirement? The answer is “it depends.” (If you don’t like that, try “as much as possible.”) The problem with retirement planning is that so much is unknowable – no one number or percentage rate quite cuts it  – and any formula depends on a mountain of factors, including: your savings rate, how many years of work remain, the rate of return on your investments, and how long you live. We took a look at some retirement planning strategies to help savers figure out if they’re on track. As with most tools and calculators, these are guides – not hard and fast decrees. The “16.6% rule” One study by Wade Pfau, CFA and professor of retirement income at The American College in Bryn Mawr, Pa., analyzes what he calls “safe savings rates,” which is how much of your income you need to save per year to fund your retirement.  What he's found is that saving 16.6% of your salary every year is the safest minimum rate you can use to finance a comfortable retirement.

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  • Disappointing Holiday Sales? Blame the Shutdown.

    Lisa Scherzer at The Exchange1 yr ago

    At long last, Congress reached a deal Wednesday to reopen the government after 16 days of impasse, letting the American public exhale a bit and bringing a modicum of stability to the weakened economy.

    The compromise, which President Obama signed off on last night, funds the government through Jan. 15, 2014, and suspends the debt limit until Feb. 7 (so get ready for another go-round then).

    But what about the present? For a handful of major companies that rely on a confident U.S. consumer to bolster the bottom line, the government logjam is being blamed for potentially weaker sales in the upcoming critical holiday season.

    Indeed, a Goldman Sachs report published this week said that, at least partially because of the government shutdown, 40% of consumers surveyed have curbed their spending. Those with household income under $35,000 were particularly impacted, with 47% indicating they were, compared with only 32% of those earning more than $100,000.

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