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Dave Ramsey says: Safe bet is to put 15% of income into retirement

(Pixabay Photo)

I have a pension plan that will pay me 80 percent of my top three highest years’ income.

Should I continue to invest 15 percent towards retirement? I will top out at $79,000 yearly, and I plan on retiring in 28 years.

— Jordan

Dear Jordan,

You should always put 15 percent of your income into retirement once you reach Baby Step 4.

I would never count on a pension as my only retirement income because the truth is many pension funds are very poorly managed.

You’ll probably get the pension when the time comes.

I’m not predicting it will go broke or anything like that, but there’s no way I would leave the financial state of my retirement in other people’s hands.

That’s exactly what you’re doing when your plan is to count on a pension or Social Security. With Roth IRAs, 401(k)s and so forth, you’re building wealth that you control.

You have to control the controllables, Jordan.

There are plenty of things in our lives we have no control over whatsoever, but you have to take charge of the stuff you can control in order to win.

Building wealth is one of those things!

— Dave

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