Retirement. How Not To Do It Like Britney.
Money magazine has a tongue-in-cheek story on the troubles that Britney is facing and what we can all learn from this. The 25-year old pop star is hauling in some $737,000 a month (yes, per month), the Associated Press reported last Thursday that according to court documents, she’s not saving or investing a penny of it. More than $100,000 each month is going to entertainment, gifts and vacations alone. While most of us may be shocked by this excess, Ms. Spears’ saving habits are actually pretty normal.The truth is, the overwhelming majority of American 20-somethings aren’t saving anything for retirement, either. The writer has some simple tips for all of us. A 25-yr old making $30,000 a year, for instance, and putting away the same 8% of his pay into a 401(k) plan annually for the rest of his career is virtually guaranteed a comfortable retirement by time he hits his 60s.
At this kind of savings rate, the person would be worth $ 2 million at 65. Read more here.