Advertisement
|
| |
|
| |
|
|
|
💵 Today’s Top Stories
Don’t ignore this step when you get a new credit card. Clark explains why it’s a mistake to miss this. Read more.
The average credit score in the U.S. may surprise you. Find out that number — plus the credit score that Clark says makes the biggest difference. Read more.
Imagine the smile on your face when you get your monthly cell phone bill and it’s just $10. How much more money could you put toward your next oil change, vacation or even retirement? Read more.
Clark says Chromebooks are “fantastic” because they’re fast, safe and relatively inexpensive. But did you know each Chromebook comes with an expiration date of sorts? Read more.
⛳ Quick Retirement Readiness Gauge: Rule of 25
A top-line, experienced, traditional Certified Financial Planner is a great option for retirement planning if you reach a certain level of wealth and/or complexity. But it’s not for everyone.
Even those who do go that route may not do so in their younger years in what Clark calls “the accumulation phase” of their careers.
That’s where the Rule of 25 is interesting: as a very quick gauge of your financial readiness for retirement (or at least a rough estimate of how much money you need saved to start feeling more comfortable).
The calculation is simple: take the amount you expect to spend each year in retirement and multiply it by 25. The result: roughly the grand total you need to fund a 30-year retirement with a 4% annual withdrawal rate from your investments.
Before you get anxious, you can subtract your expected Social Security benefits from your expenses before you multiply by 25.
As Kiplinger said: “If you expect to receive $40,000 annually from Social Security and want to maintain a $100,000 lifestyle, you only need to generate $60,000 from your portfolio. That would put your Rule of 25 retirement savings target closer to $1.5 million (25 times $60,000).”
The Rule of 25 shouldn’t be as deep as you ever go when it comes to retirement planning, especially as you get closer to retirement. But it’s a good quick-answer litmus test to determine whether you’re generally on track, ahead of schedule or behind.
That can help influence your decisions regarding your savings rate, the timing of your retirement and more.
📊 Stat of the Day
🧇 15.6 billion: Revenue at U.S. breakfast restaurants in 2025, up 13% in six years while some consumers tighten their budgets. Breakfast scores points for offering good value and dovetails with health trends (interest in protein and fiber). Chains targeting higher-income or younger customers are growing.
💰 Deal Alert: Today’s Top Deals
🎙 Podcast
Should you claim Social Security early or wait? While the math says waiting guarantees a bigger check, the real answer goes far beyond the numbers. In this episode, Wes Moss breaks down how to determine the right Social Security claiming age for your specific lifestyle, health, and portfolio. Also, Wes shares ideas to help you balance saving for your kid’s college without ruining your own retirement.
☎ Need Money Help?
The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.
Advertisement
|
| |
|
| |
|
|
|
