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Yahoo
2 days ago
- Business
- Yahoo
Here's how much you should have saved for retirement at age 30, 50 or 60 — are you at risk of falling behind?
Most Americans are worried about money, especially when it comes to retirement. A 2025 survey by Capital One and The Decision Lab found that 77% of U.S. adults feel anxious about their personal finances. A separate Allianz Life survey reveals that 64% of adults fear outliving their savings more than death itself. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) One way to deal with this anxiety is to check whether your retirement savings are on track depending on your age and income. Analysts at financial giant T. Rowe Price published retirement savings benchmarks to aim for depending on age and salary. Having ballpark figures to aim for at different periods in life can help you understand whether you're on track or behind and motivate you to take action. Here's a closer look at the figures suggested by the T. Rowe Price team. Your 30s are a critical time to start building momentum with your savings. On one hand, your income is probably accelerating as you start to make strides in your career. On the other hand, this is also a period that involves some of your biggest expenses, such as buying a house or starting a family. For example, the median age of a first-time homebuyer is 38, according to the National Association of Realtors. These big-ticket expenses could make it difficult to save any of your income. However, you also have the luxury of time, which means you have multiple decades of saving, investing and compounding wealth to look forward to, so your money still has plenty of time left to grow. T. Rowe Price suggests having 1x to 1.5x your annual income saved by your mid-to-late 30s to stay on track for retirement. That means if you earn $70,000 each year, you need at least $70,000 to $105,000 saved in financial assets to be on track for a comfortable retirement. The average 50-year-old probably has a more established career, a lower mortgage and adult children that don't need as much financial assistance. In general, this is a great time to double down on your savings and investments to get to your retirement goal as early as possible. T. Rowe Price suggests that if you have anywhere between 3.5x to 5.5x your annual income saved in your 50s, you're on track to retire comfortably. That means if your annual income is $100,000, you need up to $550,000 saved in total assets. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it The team also suggests ramping up your yearly savings rate to 15% of your income or more. 'We found that 15% of income per year (including any employer contributions) is an appropriate savings level for many people, but higher earners should likely aim beyond 15%,' says the report. While it may be difficult to save 15% earlier in your career, it becomes more achievable, and necessary, as your income increases. The average retirement age for men is 64 and for women it's 63, according to a study by the Center for Retirement Research at Boston College. However, you may decide to leave work earlier or later than the average age depending on how much wealth you've managed to accumulate by your 60s. According to T. Rowe Price, the average 60-something needs between 7.5x to 13.5x their annual salary in net assets to retire comfortably. This means if you're earning $120,000 you may need up to $1.62 million saved in total wealth to consider leaving the workforce. Keep in mind that these benchmarks are general rules of thumb based on a 4% withdrawal per year in retirement. Your target could be very different from T. Rowe Price's suggestions depending on your retirement goals. If you plan to move somewhere with a different cost of living or expect to increase your spending in retirement, your savings goal may differ significantly. If you're behind on your retirement savings, T. Rowe suggests the following to catch up: Take advantage of the full company match in your workplace retirement plan, if they offer one Increase your savings rate over time Make catch-up contributions to your workplace retirement plan or IRA, if you're over age 50 Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Retired Early But Now I'm Back to Work – Did I Make a Mistake in My Financial Journey?
If you retire and then go back to work, did you make a financial mistake? This is a question that a Reddit poster recently asked. The poster explains that he had retired early at 48 years old, but has now signed a contract for a new job. FIRE Failure by u/LeeeeeeRooooyJenkins in ChubbyFIRE His issue is that he is "disappointed" in himself for returning to work because he wanted to trust that compound interest and his wise investments would see him through for life. He has $4.38 million in total assets, including real estate, retirement, and brokerage accounts, and feels like that should be enough, but fear is driving him back to work. Specifically, he's scared of market turbulence and the economy tanking. So, did the poster make a mistake in leaving work and then returning? Did he derail his finances for good, and should he be disappointed in the decisions he's making? Is it a failure to retire and then return to work? Everyone's situation is different, of course, but there are a great many people who retire and then return to work. In fact, the 2022 Retirement Saving & Spending Study from T. Rowe Price found that 20% of retirees were working either full-time or part-time, and 7% were looking for work. All of these retirees, and the Reddit poster, are not failures for deciding to return to the workforce. In fact, as one Reddit commentator suggested, it is not a failure to respond to changing market conditions, but rather a strategic choice to return to work and build a larger cash cushion. Now, the poster may be fine with $4.38 million in assets, as long as he maintains a safe withdrawal rate. But it's just as important to feel comfortable with the size of your nest egg as it is for your nest egg to be large enough to support you -- so if going back to work provides the poster with added peace of mind, there's no real downside to doing it. How big a cash cushion should retirees have? The Reddit poster also felt like he should trust in compound interest rather than returning to work. As a general rule, the poster -- and anyone else who is invested -- should have investments they feel confident in, and should try to make sure they have the right asset allocation to get through turbulent economic times. Hopefully, the poster did that. If he did, maybe a return to work wouldn't be strictly necessary, since he does have more saved than most. Still, there are very few people who regret having too much money saved for retirement. So, if the Redditor's investments perform as expected and he works to earn extra income too, he shouldn't end up in a bad place -- he will likely find himself better off. Other posters also commented that having a bigger cash cushion is good given ongoing economic uncertainty, and that's absolutely true. Turbulent markets are a part of life and not a reason for panic, but that panic will really only get you into trouble if it takes the form of selling low because you're afraid to wait for the recovery. If you respond to a down market by investing more, that's usually a smart choice, since you're taking advantage of buying opportunities. Of course, if you work hard for early retirement and then you have to go back to work, it's hard to make that mental adjustment. And, if you do return to work unnecessarily, perhaps you are giving up some of your precious time for no real gain. In this situation, though, the poster is going back for a short time, has specific financial goals, and has a clear plan. Given those circumstances, it's hard to see what could be wrong with this poster's choices. If he still has doubts, though, talking with a financial professional about how much he should end up with in his nest egg, and how to leave work for good and feel confident in doing so, could be his best bet. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
Bloomberg
23-05-2025
- Business
- Bloomberg
Bloomberg Surveillance: Equity Pullback
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney May 23rd, 2025 Featuring: 1) Sebastien Page, head of Global Multi-Asset and Chair of the Asset Allocation Steering Committee at T. Rowe Price, joins for an extended discussion on whipsawing markets and where money managers are allocating their money in an increasingly uncertain economic environment. The S&P 500 remains on course for its worst weekly performance since the selloff following President Donald Trump's tariff announcements at the beginning of the April. 2) Barry Eichengreen, professor at University of California-Berkeley, talks about the Trump administration's international economic policies and whether they serve both global and domestic interests. It comes as US businesses are the most worried about the impact of President Donald Trump's shifting tariff policies on their revenues, with more than half projecting a hit of at least 25% to their revenue, according to a survey by HSBC. 3) Emily Roland, Co-Chief Investment Strategist at John Hancock Investment Management, talks about continued signals from global bonds about US debt and whether it's just another warning signal that will pass. Many investors believe Trump has learned his lesson and will implement a more modest tariff plan, which is why they are no longer worried about the impact of tariffs on the market, but the market is still susceptible to macro shocks, and investors are now focusing on fundamentals. 4) Joe Lavorgna, Chief Economist at SMBC Nikko Securities, joins to discuss President Trump's tweets on tariffs that would affect Apple and the EU. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including a WSJ story on expensive mocktails and a Bloomberg News story on Tom Cruise receiving an aircraft carrier for one of his missions.
Yahoo
23-05-2025
- Business
- Yahoo
Page Says Big US Tech Companies 'Are Awesome'
Sebastien Page, T. Rowe Price global multi-asset head, says there's more upside for European stocks and big US tech companies "are awesome." Page also talks about the impact of tariffs on European governments. He's on "Bloomberg Surveillance."
Yahoo
22-05-2025
- Business
- Yahoo
Here is why rates are rising
Rising Treasury yields, particularly the 30-year yield (^TYX), have had the markets on edge. What is causing the rise in rates? Sébastien Page, T. Rowe Price's head of global multi-asset and chief investment officer, explains in the video above. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. For more on the latest market moves, let's welcome in now Sebastian Page, T. Rowe Price, head of global multi-asset and chief investment officer, as well as author of the book The Psychology of Leadership. Sebastian, always great to see you here on set. Likewise. Thanks for having me. So, let's start with an issue front and center for investors right now, rising rates. Two questions, Sebastian, why are they rising, and two, how concerned should investors be? Rates can rise on higher growth expectations. I don't think that's going on over the last few days. Rates can rise on higher inflation expectations. I think that's part of it. Rates can rise on investors being worried about the risk of holding long maturity bonds. I think that's what's going on right now, and it's related to the budget deficit. We're running deficits that pre-COVID at 7% of GDP, we would only run in a recession. And now this budget measure is making its way through Congress, that's getting bond investors nervous, Josh. The bond vigilantes. That's what we call them, the bond vigilantes, is they step in when spending gets out of control. And so how to my second question, you're talking to to T. Rowe Price folks, they ask, how worried should I be, Sebastian? You tell them what? I'll give you a nuanced answer. We are underweight treasuries, so we're positioned for rising rates. So you should be concerned about rising rates, and I think inflation is part of it. You have rising commodities on the horizon in my view, you have, you know, wages growing at 4%, you have a housing shortage, and you have tariffs, which are inflationary. So the risk to inflation is to the upside. However, I want to give you the nuance. I don't think this is cataclysmic. I don't think this is going to break risk assets and be a financial disaster because there's still a lot of demand in the long run for US treasuries. At the same time, we have to worry about these levels of deficits. But this is not like the world's falling apart kind of situation. And you saw it, stocks did okay today. Okay. Sign in to access your portfolio
