That is the sentiment of many people these days. They do not believe that retirement the way they envision it will be possible for them.
I am currently reading a book by Charles Farrell. In it he offers the following table that relates capital to income ratio for someone to retire at 65 with 80% of their last income.
He advises to to use home equity in the calculation and that additional 20% will come from social security.
In the past when I went to an investment seminar the speakers used to hold up one finger and state that it takes one million to retire. Now days they hold up five fingers. I think that that number is not realistic for most people. I like Farrell's thinking because it gives a ratio in terms of your current income.
Today's question is:
Are you where you want to be with respect to your capital/income ratio?
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