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Are you ready to retire?

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  • Description

    The president of Fidelity Investments, Kathleen Murphy, stops by with some steps to help you get there

  • Duration 5:09
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We're gonna go straight to Boston right now where we have Kathleen Murphy the president does Fidelity Investments joining us with some.

Interest -- and information we shall pay attention to about saving for our golden years at any aides hey Kathleen has -- guide.

Good thanks nice to be with you OK so what would you recommend to anybody out there in terms of saving for retirement.

Lol I would say and depending on your age it's never too early or it's never too late -- -- -- to save for retirement we found in a survey we recently did.

That the average working American -- only save 33000 dollars for their retirement.

And the average retired American has 55000.

Dollars for retirement how am I so need we need.

Well it depends on your age but we've we've for example we -- -- down by baby boomer gen X gen Y -- the average on baby boomer has an income gap her -- of 2100 dollars.

But to your point -- are steps we can take.

To close that gap and we've provided the five actionable concrete steps that people can take.

The baby boomers and then did those those steps that -- wop in the gen Y generation can take.

To really close that gap what -- but steps.

So -- at a -- baby boomer.

The first thing is if you're if you have not yet retired.

Make sure that your bank maximizing your contribution to your 401K if you haven't won -- also really importantly.

If they -- employer provides -- -- take full advantage of that match it's free money right that you need to make sure -- taken advantage of if you can also help supplement your savings with an IRA so at Fidelity.

Though is our clients that have both -- an IRA into 401K.

Have saved on average 2121000.

Dollars you can see the compound in effect of that savings over time -- -- something here -- For one -- -- with some personal information so here I've set up almost every year at maxed out my.

40 line and I set up buyer is but not all of them have grown too much in value we're talking over ten -- Yeah it is -- in their outlook concerned and I blab all this money set aside and particularly my hiring funds they've state thing for the most part.

Well and that that's actually -- to obviously kids make sure you've got that right asset allocation and so.

-- it for those investors -- have the right asset allocation and you you have to have the right time horizon.

They're better positioned and you know we just released a study on the 401K side that showed.

That the the average 401K investor.

Their returns went up 62%.

From 09 -- 2012 now a lot of that was market action right part of it was people or savings more.

But he what you need to make sure is that you have the right asset allocation those people.

That invested only in fixed in common the last three years right didn't get a 62% increase the asset allocations critically important.

Wolf Fidelity just -- put out numbers right Kathleen at the average for a one case now at a a record high in terms of -- you've been collecting that data back in 1998 just about 75000.

In the average forward -- Is that -- -- gets -- through retirement.

The -- it it helps a lot but I would say in general to have the retirement you deserve.

You also want to do what you did which is have supplemental savings through an IRA.

So one of the things we see infidelity that you -- largest writer for one case in -- have a lot of data on this -- the the it our clients that have all the 401K in an IRA.

Have saved 2121000.

Dollars to compare the power of combining -- -- -- yes.

On the I think they keep asking this question and -- -- to answer because I know that you can't answer something like this but for the average American what do we really need to live -- From with with their -- -- now six -- -- -- -- in general 65 yeah okay insisted I on yet in what what should our nest that look like which how much money should be in.

Well again a -- depend how much you make of what kind of retirement you want but again will we looked at the averages.

In general.

People want about 5000 dollars per month if for their retirement nest egg.

Yes that's not and I think that's more money than most people anticipated that they would need.

And I and a lot of people get closer to those golden years and then -- -- -- -- when they realize everything that they have to deal it.

And then well -- let me yet and yet.

I think as they look for -- so the gen Y generation those people would have the most time till retirement.

The the five action steps that we outlined.

Would if they if they took action now they would completely cover their income gap and get to that 4905000.

Dollars so if you take the steps early and your consistent about it.

You can absolutely close the hole gap and that's pretty empowering for investors like bank.

And that's important for all the young people out there even if it's hard to get a job right now -- good line.

Whatever you do have you should Max out your contribution.

In your 401K and then set up and supplemental stuff an enclosure rise Google affiliate.

When you're 65 you can have a nice little.

NASDAQ -- you Kathleen thank you so much for joining us have a great day there -- Boston.

Thank you.

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