Financial Expert Says You Need $750,000 to Retire Comfortably
An Indiana financial planner says in order to retire comfortably, $750,000 is about how much you'll need.
Don Steel is president of Planned Investment Company, an Indianapolis-based investment advisory firm. He says most people fail to sit down and figure out how much money it'll take to retire. Steel says that's backed up by the latest surveys that show that more than 65-percent of those surveyed won't have enough money saved up for retirement.
Steel says American workers should try to save 15-percent of their annual salaries for retirement. He says it's a tough figure, but it's very necessary. He says with healthcare advances, people are living longer. He also says many people will be working into their 70s if they don't plan well. Steel says workers should maximize the use of their 401K or pension plans. If they don't have either, Steel says they should open an Individual Retirement Account or IRA and be very disciplined about contributing to it.
Steel adds that workers should try to downsize their homes and lifestyle and contribute the savings toward retirement. He says it's also a good idea to take out upwards of $750,000 in life insurance so that loved ones will be taken care of in the event of death before retirement. Steel also suggests consulting with a good, reputable financial advisor.