Wednesday, December 13, 2017
Business

Retirement more expensive than you might think

Two things make Investing for a Lifetime (Wiley & Sons) worth your attention.

First is the simple, straightforward approach the author, Richard C. Marston, a finance professor at the University of Pennsylvania, uses to explain how you should invest to ensure that your money lasts as long as you do.

He reduces everything to the three steps that you might have suspected: Save a lot, invest your money wisely and don't withdraw the funds too soon.

"I believe investing is relatively easy," he writes. "It is much harder to save than invest."

That brings us to the second thing to like about the book. Most of it is devoted to helping you determine exactly how much money you need to put away. His answer: a great deal.

Fidelity Investments garnered a lot of attention two years ago when it declared that you would need eight times your current salary to "meet basic income needs in retirement," but Marston disagrees. "Despite the fact that it is very difficult to save eight times your income, the goal the company proposed seemed too low to me," he says.

If you thought eight times your current income is daunting, Marston's default position will stun you. He says it can easily come to 15 times what you are earning now.

He calculates that someone making $100,000 annually, saving $15,000 a year for retirement and qualifying for almost the maximum amount paid by Social Security would need about $59,000 a year in retirement. So where will it come from? Unless you have a pension or some other stream of income once you stop work, the answer is your retirement funds.

So the person making $100,000 will need a retirement portfolio of $1.475 million to be able to withdraw $59,000 a year. That works out to be a savings goal of 14.8 times current income, not eight.

Comments
Flipping homes for big profits is getting harder in Tampa Bay

Flipping homes for big profits is getting harder in Tampa Bay

Michael Sadeghpour was just 18 when he did his first flip.Using money saved from a job and borrowed from his grandmother, he bought a foreclosed condo in north Pinellas County for $67,000. He did some inexpensive renovations and flipped it for $125,0...
Updated: 1 hour ago
Wee Gallery entrepreneurs turned black-and-white baby mural into thriving business

Wee Gallery entrepreneurs turned black-and-white baby mural into thriving business

When Surya Sajnani and Dave Pinto were expecting their first child in 2002, she painted a mural with black and white zebras on one wall of the nursery. The couple had read that a baby’s eyes are stimulated by repeating patterns of black and white. "I...
Published: 12/13/17
Career Q&A: Two bosses who don’t care for each other

Career Q&A: Two bosses who don’t care for each other

Q: I seem to be caught between two high-level managers who really don’t like each other. One is a director, the other is a vice president, and I am an assistant to both. Whenever the director stops by my desk to chat, she makes critical remarks about...
Updated: 9 hours ago
Nicko’s Fine Foods, classic diner and Seminole Heights icon, closes after six decades

Nicko’s Fine Foods, classic diner and Seminole Heights icon, closes after six decades

Nicko’s Fine Foods, known as the place Elvis Presley ate following a 1956 concert and Tampa’s last classic prefabricated diner, has shut down after more than 60 years in business.Owners Karen and Nicholas Liakos could not be reached for comment, but ...
Updated: 11 hours ago
Ex-Facebook VP: Social media destroying society with ‘dopamine-driven feedback loops’

Ex-Facebook VP: Social media destroying society with ‘dopamine-driven feedback loops’

Washington PostA former Facebook executive is making waves after he spoke out about his "tremendous guilt" over growing the social network, which he feels has eroded "the core foundations of how people behave by and between each other."Chamath Paliha...
Published: 12/12/17
Illegal card skimmer discoveries in Tampa Bay double in 2017

Illegal card skimmer discoveries in Tampa Bay double in 2017

State investigators have discovered more than double the number of credit card skimmers in the Tampa Bay area in 2017 than in 2016 — with still a few weeks left in the year. The Florida Department of Agriculture and Consumer Services found 54 skimmer...
Published: 12/12/17
French group to take over Westfield malls for $15.7 billion

French group to take over Westfield malls for $15.7 billion

Three Tampa Bay malls may soon be under new management. French real estate company Unibail-Rodamco has agreed to buy Australia-based shopping mall operator Westfield Corp. for $15.7 billion in cash and shares."Westfield would arguably be the best or ...
Published: 12/12/17
Tampa Bay’s mortgage delinquency rate crept up in September

Tampa Bay’s mortgage delinquency rate crept up in September

Times Staff WriterThe percentage of Tampa Bay homeowners who are late on their mortgage payments rose slightly in September, probably due to Hurricane Irma. According to CoreLogic, 7 percent of bay area mortgages were delinquent by at least 30 days c...
Published: 12/12/17
Unusual paddle design earns worldwide market

Unusual paddle design earns worldwide market

Paddling on the heels of the last supermoon of 2017, Phil Hughes navigated an uncommonly low tide off Dunedin through St. Joseph Sound on an effortless but lengthy glide.This is not easy water, nor an easy paddle, and could be especially daunting for...
Published: 12/12/17
Punit Shah’s Liberty Group building new Channel District hotel with Jameis Winston as limited investor

Punit Shah’s Liberty Group building new Channel District hotel with Jameis Winston as limited investor

TAMPA — Punit Shah’s Liberty Group announced plans Tuesday to start construction in January on a Channel District project that will include a Hampton Inn and Home2 Suites, both by Hilton, plus a Starbucks Coffee.Financing for the $40 million project ...
Published: 12/12/17