Workers within 5-10 years of retiring are trying to figure out just how much money they need in their 401(k) and other investments to retire. Doug Horne, the founder/CEO of Aspen Wealth says there's no hard-and-fast rule, but he does like the 5% approach....but warns you about the downward slope the market is taking these days. Horne says he likes the 5% rule to find out. "A good rule of thumb is to use a round number like a 5% withdrawal and see what kind of number that adds up to. Then figure 'if we have this much more in our 401(k) then how much would it be."
Do You Know How to Handle Your Money?
Horne emphasizes that going to a trusted financial expert will help you hold on to your investment by choosing the right mix. "While your still working, figure out how to safely take out that money in retirement income without having to worry about times like we're having now and going: 'oh, no!' "5% this year, and then the market goes down 10%, your 5% won't be worth as much. Having a safe place --- especially once you start taking your income, or think about taking your income, is ever so important.: