Not only is it hard to save for retirement,
many people who are saving just don’t know how much they should have saved.
With employers increasingly leaving the burden of retirement on the individual,
and a gloomy outlook on state-sponsored old age benefits, much of retirement
saving is going to be up to you. How much you should have saved, and how you’ve
allocated it, depends a lot on what your income is.
Recently, a MarketWatch article that
claimed by the age of 35, you should have twice your salary saved was roasted
online. For many Millennials carrying student debts into their 30s, dreaming
about buying a home, and facing ever-higher rents, that number can seem
completely out of reach. Unfortunately, there is some truth to it. There’s an
important caveat: saving twice your salary by age 35 is a successful strategy
for a stress-free
retirement, but that doesn’t mean most people now or even in the past have
been able to achieve savings like that.
Retirement Savings by Income
Much of your ability to save depends on
your income. The more you earn, the higher percentage of your annual income you
should have saved. A more reasonable model
of retirement savings suggests that by 35 you should have:
90% of your salary saved if you
160% of your salary saved if
you earn $75,000
200% of your salary saved if
you earn $100,000
260% of your salary saved if
you earn $150,000
Up to 350% of your salary saved
if you earn $300,000
Under this model, your savings should have
an 80% chance of lasting 30 years after you retire and a nest egg that
experiences 6% annual growth. From 35, you should be setting aside 10% of your
annual salary every year.
Silver Allocation in Your Retirement
Stocks and bonds are the basics of your
portfolio, but have you considered how precious metals like gold and silver can
play an important role in your savings? As your retirement savings increase, it
pays to look into non-paper assets, such as gold and silver.
Gold and silver are assets that are great
to have when a recession or financial crisis hits your savings on the stock
market. Some financial experts say anywhere from 5-10% or more of your
portfolio should be invested in gold and silver. The last financial crisis,
which largely shaped the employment and savings world Millennials experience
today, sent off major gains in gold and silver.
Gold vs. Silver
Gold is the more stable of the two precious
metals, whereas silver is a great bargain right now. If your primary goal is to
counterbalance risk, gold is safe. Silver on the other hand has a much higher
upside as it’s deeply undervalued right now. Silver bars can also be more
accessible, as they come in at a fraction of the price. It isn’t hard to learn how to buy silver bars and bullion
as online dealers can provide fully insured delivery as well as storage.
Investing in silver bars and gold will help
you weather the storm. At the age of 35, there will likely be at least 3
recessions between now and when you retire. As you get older, you have less
time to watch your savings recover if you want your savings to really grow. Precious
metals can help you achieve that growth.