Marguerita-Cheng-RG-2-What are the most important considerations when creating a retirement savings benchmark
Marguerita Cheng explains that when determining how much to save for retirement, you should consider your A-R-T — Amount, Rate of return, and Time — and adjust one or more of these factors based on your goals and flexibility.
Video Transcript
Basically a lot of people want to know how much do I need to save for retirement and there are certain things to consider when creating a retirement savings benchmark. This is very specific to your individual situation, so some things to consider. A, the amount you're going to need to spend in retirement.
R, the rate of return of your investments. This is really important. You don't want to have too aggressive assumptions.
And T, time. When do you want to retire? A R T, art. It's really important if you say, you know what, that is it.
I'm retiring when I'm sixty. You understand that the T is not flexible. So perhaps you can adjust the amount that you spend or the rate of return of your assets. Or maybe you say, You know what, I am not comfortable adjusting the amount I'll spend in retirement.
So then you can be flexible with the R or the T.
And then last, you may say, You know what? I'm not comfortable adjusting or having aggressive assumptions for the rate of turn. If that's the case, then we can focus on the amount and the time. So I would say important considerations would be think our amount, rate of return, and time.
