Are You Investing Enough?
Most Americans haven’t tried to figure out how much money they’ll need to fund their retirement - so naturally, they don’t know if they are saving enough (Employee Benefit Research Institute, 2011). Estimating the amount you’ll need and determining how to reach your goal isn’t as complicated as you may think. Follow our hypothetical 35 year old investor, Shari, through the two step process, then supply your own numbers. Be sure to revisit your numbers over time so you can adjust them as needed.
To make up for any shortfall you’ll need to adjust your plan. Your options could include investing more aggressively in the hope of boosting your return, increasing your annual contribution or postpone your retirement.