Welcome to Rudd and Wisdom’s participant newsfeed.
We’ll post about a range of topics, but our initial focus will be on how to fund your retirement, once you have finished your main career.
It’s easy to find sensible advice on how to build up your 401(k), or similar plan. Broadly the three tricks to know are: start early, stick at it, and try to keep your savings rate at 10% or higher.
But now you are planning to finish work, and you have followed the advice as best you could. What happens next? The old-fashioned advice was that your retirement is like a three-legged stool, with the legs being social security, your employer’s pension, and your personal savings. However in 2019 few of us get an employer’s pension, and so our personal savings are the same as our employer’s 401(k) plan. And it’s easy to read the press or the Internet and believe the social security system is in danger. So what should we do?
The next few posts will look at several aspects of this problem. We’ll assume you have built up some 401(k) or similar savings, and that you have paid social security taxes.