by David John Marotta

Most workers are putting all their retirement assets in the basket of their employer's retirement plan. They are depending on one employer and two dozen eggs (funds) to hatch and maintain their lifestyle, independence and dignity in their later years.


Read the complete column at http://www.emarotta.com/article.php?ID=251

Marotta doesn't return posts thief.

just FYI

max out anything and everything you can...and keep long-term stuff in mutual funds.

if you start at age 25 -- *maybe* you'll be able to retire at 65. At least that's how i look at it (i've got no pension opportunity, and I'm not banking on social sec.).

I'm sure if I have kids I won't be able to contribute the max 15%.

Also, try to work for a compnay that does a match to your 401k.

thief, depends on your cost of living -- usually they say 60% of your salary before you retire.

So if you retire at age 60 making $100k/year, then plan on needing $65k/year from age 65 to 90 (depending on health, etc). You can't withdraw from your 401k until age 59 and 1/2 so just use 60 as retirement age as far as the calculation goes. So 65k x 20 years = $1.3 million. That's about inline from what I've heard (I used to work for a company that specialized in 401k advice online).

The earlier your start, the easier it is to reach your goal. If you're over 50, there is a "catchup" where you can contribute more than the max (currently I think it is $15,000 per year to the 401k).

As for the employer contribution -- usually they cap them at $1,500 per year match (although I have seen companies that limit it at $7,500 match), but it is still free money, so you should at least contribute $1,500 if nothing else (with company match it becomes $3,000).