On Track to Retire?

ARE YOU ON COURSE for a comfortable retirement? Here’s how to get a quick sense for where you stand:

• Add up the savings you have for retirement. Plug this number into the Retirement Planner at Dinkytown.net, along with how much you expect to save in the years ahead and when you expect to retire. Override the default investment returns, inserting 4% as your expected portfolio performance and 2% for inflation. Take the sum you’ll have at retirement and divide by 25. That’ll tell you roughly how much you can reasonably withdraw from your portfolio each year.
• Head to SocialSecurity.gov and set up a free my Social Security account, so you can get an estimate of your likely benefit. For a faster but less accurate estimate, try SocialSecurity.gov’s Quick Calculator.
• Find out how much you will receive from any traditional employer pensions. For many folks, the number will be zero because these plans, unfortunately, are now relatively rare.

On track? You might have the option of retiring early. Falling short? You’ll need to play catch-up. Either way, you may want to make some portfolio adjustments, while also getting a firm grip on your living expenses.

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