Tuesday, November 13, 2007

Brit Brit, the financial guru

This story, from Yahoo! Personal Finance, discusses how Britney can be a lesson to us all. Well, at least financially her maladies translate into valuable lessons about personal finance, savings and retirement.

The article points out

Assuming she could scrape by on 70% to 80% of her pre-retirement income in retirement - or about $590,000 a month in today's dollars - Ms. Spears would have to accumulate a nest egg of just over $300 million by age 65.

Sound daunting? Nah. All she has to do is keep working and put away 8% or so of her monthly $737,000 income until she retires and she'll hit that goal.

8% ain't that bad. And just think--if your employer matches, that's twice the amount. Obviously Britney has no one employer to match any funds, but her failure to save should be a lesson to us all.
A 25-yr old making $30,000 a year, for instance, and putting away the same 8% of his pay into a 401(k) plan annually for the rest of his career is virtually guaranteed a comfortable retirement by time he hits his 60s.
A comfortable retirement? Sounds nice. Hell, a retirement at all sounds good at this point.

The lesson: When it comes to saving for retirement, sometimes you can Gimme More and have your cake too.

(Doesn't she look smart in the picture above?)

1 Comment:

MarilynJean said...

how gay is Yahoo! Finance for riding the Brit Train with this story? The level of gayness is unmeasureable. Un.


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