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Money Expert: How Much Should I Have In Savings?

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there's a formula for how much money you should have for retirement based on your age so let me give it to you I get asked on the street all the time by people David how much money should I have saved how much have saved a 30 or 40 50 or 60 well it turns out there's actually a formula at 30 you want to have one times your salary that's your annual salary 35 two times at forty three times at forty five four times at fifty six times at fifty-five seven times at sixty eight times by sixty seven ten times so that's a great formula but remember it's a generic formula so you might need to be saving more than that you definitely don't need to be saving less than that so how do you get to those numbers well here's what fidelity recommends and I completely agree with them they recommend saving fifteen percent of your income if you watched me before on these videos you know I recommend saving one hour a day of your income minimum that's twelve and a half percent of your gross income and if you've got a 401k plan and they match you're gonna get to that fifteen percent that's how you'll get to these numbers now how does the money need to be invested to get to these numbers well again back to Fidelity's research they recommend fifty percent in equities and fifty percent in bonds so it's basically a balanced approach to investing but here's what I can tell you whatever your situation is right now if your 30 or 40 or 50 and you're comparing this to where you are or want to be the best thing I can tell you today is save more after you've done watching this video go back to your 401k plan increase what you're saving by at least one or two percent they'll get you back up to these numbers that you want to be at you can do it [Music]

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