USA TODAY US Edition
HOW TO CLIMB OUT OF THE INCOME-DEPENDENCE TRAP
If you want to break your dependency on your income, you must save a higher percentage of your income every year until the day you retire.
At age 40, save 10% of your income.
Each year after, increase your retirement savings by 1%.
Using this strategy, at a bare minimum an investor would only be living on 65% of their income at age 65.
HIDDEN BENEFIT TO THIS PHILOSOPHY: You will accumulate a bunch of money. But this time, you’ll have a bunch of money and no income dependency issues. What I love the most about this idea is that it gives retirement hope to many people who never thought retirement was in the cards.