Retirement security is in our hands
The article discusses how individuals can secure their retirement income without relying on Social Security. It outlines a strategy involving consistent contributions, targeted investment returns, and controlled withdrawals. The suggested approach emphasizes the importance of capital preservation and growth through a balanced investment portfolio.
- ▪Individuals should contribute 15% of their annual earnings to a retirement fund over 40 years.
- ▪Aiming for a minimum annual return of 7.5% on investments is recommended for retirement security.
- ▪The expected size of the retirement fund after 40 years of contributions can reach approximately $3.4 million.
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The average American adult can meet the challenge of ensuring a resilient retirement income even in the absence of a fiscally challenged Social Security program. At retirement, the individual must have accumulated an endowment fund that will be sufficient to provide an annual income for life that will be comparable to the individual’s earnings in the final year before retirement. There is a clear path to retirement security: (1) Contribute 15% of annual earnings over a 40-year period to the individual’s retirement endowment fund; (2) target a minimum 7.5% annual rate of return on the investment portfolio of the fund; and (3) over a 30-year period following retirement, limit annual withdrawals from the retirement endowment fund to a maximum amount that is comparable to the individual’s…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Washington Examiner.
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