MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, July 5, 2013 DFA Research Challenges Accepted Wisdom on Savings Most aspiring retirees and their advisors feel faint when they think on the subject of retirement savings. It's just naturally assumed that they haven't, and won't save enough. A new study from Dimensional Fund Advisors [profile] is poking holes in that common wisdom, according to Reuters. Savers usually freak because the general assumption is that their salary replacement rate will have to be 75 to 80 percent -- which for many seems impossible to achieve. The Dimensional research, penned by Marlena Lee, says that the actual replacement rate needed is much lower. The gist of her argument is this: the more a saver makes, the lower their replacement rate upon retirement needs to be because line items like high working-year taxes disappear in retirement. The full argument can be read in Reuters. Printed from: MFWire.com/story.asp?s=44741 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |