You have just turned 35 and already hit the major milestones! With a family you love, your forever home and a career that both invigorates and compensates you very well, you realize it is now time to focus on retirement and college for the kids. Your spouse is equally successful and agrees that these goals are urgent. Like most people with this profile, you understand that without pensions and the rising cost of education the onus falls on you and your spouse to save for these objectives. You quickly realize when you analyze your situation that you will have a significant retirement income gap. The more money someone makes, the less they can rely on maxing out their 401(k)s and social security (hopefully it will still exist). The figure below illustrates this concept. To better illustrate, if you max out your 401k and you make $200k a year you are able to save 10% of your income; if you max it out and you make $1million you are only saving 2%.
In order to maintain a similar lifestyle after retirement, you still need 80% of your current income. In order to hit that goal there will need to be additional savings elsewhere. Add that to costly education funding and something serious must be done.
Want To Read More? Sign Up For Our 7 Day Free Trial.
Please login below. If you don't have an account, feel free to sign up and get access to the entire WealthCAP HUB®.