Easy How to Guide - Your Retirement Investing Made Super Simple

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A Beginner’s Guide to Retirement Investing

  • The expected amount needed for a comfortable retirement (as of 2021) was $1.04 million
  • 15% of Americans have $0 saved for retirement
  • 22% have under $5000 saved for retirement
  • Just 25% of American workers ever used a retirement calculator to see how much they’re likely to need; 43% just guess (the rest estimate based on current spending)
  • 48% of workers think their income doesn’t let them save enough for retirement
  • The median household retirement savings level is $93,000
  • 43% of millennials fear being unable to cover their family’s basic needs in retirement; 70% are stressed and anxious about retirement finances
  • Social Security retirement benefits were about $18,500/year as of 2020 (US News & World Report says that increased to $19,884/year in January 2022)
  • Over 19% of workers expect to continue working in retirement because their retirement savings aren’t enough; 14% plan on working as their primary “retirement” income source
  • On average, retirees spend 80% of their pre-retirement spending ($49,780/year vs. $61,960/year)
  • P is the portfolio size you need (that’s what we’re solving for)
  • B is your estimated retirement budget (if you haven’t used a retirement calculator, do that, or you can use the 80% of current spending estimate)
  • F is your fixed income in retirement (think Social Security benefits, defined benefit pension, annuities, rental income, etc.)
  • R is your expected investment inflation-adjusted return during retirement (this depends on many things, but for estimation many experts suggest using 4% for a 50/50 stock/bond portfolio, and some suggest dropping that to 3.5% or even 4%)

Step 1: If you haven’t already, start now!

Step 2: If available, sign up for your employer’s 401(k)


Step 3: Invest for growth!


Step 4: Choose your investments based on your level of knowledge and confidence

Step 5: Leave it alone!

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