How much is enough?

We all know that it's important to put money away for retirement.  There is corporate 401K's and personal IRS's.  There are also annuities and various college savings plans. The question is How much should you put away?  This is one of the questions most people I know of never ask.  But if you are putting away money for retirement - do you know it will be enough or are you hoping it will be enough?  Her is something to thing about:

Let say that you retire at age 65 and you live until 85.  That is a 20 year retirement.
20 times 365 = 7300 - that is the number of days in retirement.
7300 times 3 = 21,900 - the number of meals you eat in retirement
According to the Bureau of Labor Statistics, the average meal right now is $10.
21,900 times $10 is $219,000 - the total cost of meals in retirement.
If you are married it would be assumed that you will let your spouse eat as well
That is $438,000 over twenty years and all you have done is eat.  There are no gifts for the grand kids, no vacations or groceries or doctor visits or ... well you get the idea.

Are you really saving enough?

End of the year is fast approaching.

Seems like New Years was just yesterday. Some how Thanksgiving has come and gone already. 2013 is right around the corner. Are you ready for it? Now is the time to start thinking about April 15th. I know, no one wants to think about taxes with Christmas coming. If you wait until April it will be too late. Start looking at the tax deductions you currently have. Look at what you can can take advantage of before the end if the year. Is your 401k fully funded? What about your Roth account? So you have doctor visits that can be scheduled before the end if the year? If you are a small business owner have you looked at all the deductions that are available to you? I would highly recommend you take advantage of a tax professional I know they are not cheap. But the money you could save generally out weighs the fees they charge. If I can ever be of any assistance in helping you, please don't hesitate to let me know.

Milton Friedman - Greed

It was true in 1962 and it's still true 50 years later