How much to save for retirement
Stocks back where they were 10 years ago. Sophisticated investors and institutions buying inflation-indexed Treasury securites (TIPS) yielding 2% real.
Any good news there? Yes, if you give high value to making the math easy!
Assume an after-inflation, after-tax, after-expenses yield of zero.
Want to work for a year and then sit on a beach for a year? Save 50% of pay.
Want to work age 25-55, and be retired age 55-85? Save 50% of pay.
Ouch. Well, we can all buy low-price retirement houses in Baghdad.
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03-06-2009, 06:14 PM
