Does anyone here have "your number" for retirement? How did you do it?

[hopefulfaith]

I'm looking at our retirement accounts, and wondering how I can more definitively prepare us for retirement.

My current system is having us in a "lifecycle" fund, putting as much in as we can (11% right now), and crossing my fingers!

I'd like to feel more secure about it and more proactive/in control.

Does anyone else have a better plan? If so, how did you arrive there?? (books, websites, etc. are appreciated if you used them, too!)

Thanks!

[Geigerin]

It sounds like you're trying to figure out if you're on track for retirement savings, and if not, how you can get there. If so, there are calculators available online that can help you figure it out. Just google 'Retirement Calculator.'

Whenever I complete those calculators, I usually put 'growth' at 8% and inflation at 6%. I feel like that gives a conservative picture of where we're at in working towards our goals. I also try to be realistic about savings over the years. (Although we put 15% into a 401k, we don't always max out our roth contribution, so I try to go with the least we would do in a year.)

American Funds has a good one that I've used a lot.

I recommend doing the longer calculation because it provides a more accurate picture of what you'll need in retirement.

Hope that helps.

[velochic]

Knowledge is power. I'd suggest reading as much as you can by as many diverse financial advisors as you can. I like Eric Tyson, John Bogle, Suze Orman (especially for women... her message can be empowering), and Burton Malkiel. Although I have no religious leanings, I also like Larry Burkett, who has been deceased a while, but who had every original idea that Dave Ramsey now markets for profit. There are many others that are just as good, but some messages hit home better for different financial styles.

[zinemama]

We went to a financial planner because we really wanted to have a handle on this. She looked at our situation and income and recommended how much we should be putting aside each month and where.

[hopefulfaith]

Thanks!

Geigerin - I'm going to try that calculator program. Thanks!

Velochic - I just googled Larry Burkett, and I thwacked my head: he was with Crown Financial Ministries, which has a good radio show that I've listened to a number of times! I didn't recognize his name, but I just bookmarked the CFM website and I'm going back to it for more. Thanks!!

Zinemama, I've thought really hard about going to a financial planner and I think this might be the year...maybe! I feel like we're past the obvious basics of financial planning, but that we don't make enough money to have to pay for advice, if that makes sense. Did you find that the planner was worth paying for, or did you walk out of there thinking "Wow, I could have done that myself!"

[bigteamug]

I have to say that the figure that DH came up with is scary. BUT we are planning on one of the three things we have (soc security, his pension, our savings) being wiped out somehow by economic mess. Hopefully not more than one.

[zinemama]

Originally Posted by hopefulfaith

Zinemama, I've thought really hard about going to a financial planner and I think this might be the year...maybe! I feel like we're past the obvious basics of financial planning, but that we don't make enough money to have to pay for advice, if that makes sense. Did you find that the planner was worth paying for, or did you walk out of there thinking "Wow, I could have done that myself!"

I absolutely felt the financial planner was worth it. First of all, I asked around and got recommendations. This was someone highly regarded by everyone I asked, also she worked independently, not part of a corporation. Second, we were looking for someone who could advise us on socially responsible investing, and she had those qualifications. So we checked her out pretty thoroughly first.

She took all our information and really analyzed it between the time we first met with her and the second. She presented us with all her findings and advice. She reassured us that we were mostly on the right track and steered us in a wiser direction in one area. She suggested investments we would not have thought of on our own. It wasn't cheap, but I'm glad we did it.