Ready to Call It Quits and Retire Completely?

Emotionally, you were ready for retirementyears ago. But do you have what ittakes financially? To see where yourfinances stand, check out Vanguard'sretirement tools at www.vanguard.com(click on the personal investing portal andthen "IRAs, 401[k] rollovers, retirementinvesting"). Calculators and worksheetscan help you discover your asset allocationand determine the best retirement vehicle,including IRAs and annuities. You can alsocalculate if you are on the right track, ordiscover exactly how much more you willneed to allocate to your retirement savings.Simply input your salary, retirementgoals, current savings balance, and projectedinvestment returns, and the calculatorwill reveal your retirement asset needs,the total value of your current assets, andthe percentage of your annual income thatyou should save to meet your goals.According to the Web site, a 27-year-oldwho makes $100,000 per year needs tosave 13% of their income annually in orderto retire in 40 years at age 67, assumingthe individual will live for 25 years duringretirement. With no retirement savings, a37-year-old needs to save 21% and a 47-year-old must squirrel away 36% of theirincome over the next 20 years to retire.These percentages translate into an additional$23,000 every year that a 47-year-oldwould have to save in order to retirewith enough money, illustrating the importanceof early planning and saving.