Too many young folks think retirement is so far in the future it does not merit current attention. From experience I can tell you that retirement arrives sooner than you realize, particularly if you are not properly prepared. Once more, check out The Golden Rule of Investing. If I want to scare myself into saving more I reread the following William Bernstein quote.

“Each dollar you do not save at 25 will mean two inflation-adjusted dollars that you will need to save if you start at age 35, four if you begin at 45, and eight if you start at 55. In practice, if you lack substantial savings at 45, you are in serious trouble. Since a 25-year-old should be saving at least 10 percent of his or her salary, this means that a 45-year-old will need to save nearly half of his or her salary. Most 45-year-olds will find this nearly impossible, if for no other reason than the necessity of paying living expenses, payroll taxes, and income taxes.” Does anyone need more motivation than these words?

How do you analyze if you are in good shape and ready for retirement? If you are 45 years old and save $1,000 per month will the Bohr Portfolio permit you to retire at age 66? Assume inflation will be 3.5% over the rest of your working life.

**QPP Projections:** The following portfolio assumes the S&P 500 will grow at an annual rate of 7.0%. The Bohr is projected to exceed the S&P by nearly 100 basis points – our goal. We are taking on more risk at 15.9% as we prefer to come in under 15%. The diversification metric is a solid 43%. Can we make it through our retirement years with this portfolio?

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