The One Chart That Will Totally Change How You View Retirement Planning

It's no secret that retirement planning can seem like a dizzying process. At the same time, however, what it really boils down to is incredibly simple: Spend less than you earn, and invest the difference. Wash, rinse, and repeat.

Two weeks ago, Motley Fool contributor Brian Stoffel offered up a very simple and practical way for just about anyone to retire in under 20 years. The article garnered a lot of positive attention from readers, but many were confused by a chart offered up at the end of the article.

In the following video, watch as Brian explains how by simply saving 5% or 10% more of your salary every year, you could be shaving years off your wait to retirement.  

Key retirement planning tip: Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


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Comments from our Foolish Readers

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  • Report this Comment On April 07, 2014, at 8:07 AM, Onmyown wrote:

    At 1:50, ...you save 65% but have 45% to spend? How does that work?

  • Report this Comment On April 07, 2014, at 9:05 AM, TMFCheesehead wrote:

    @Onmyown-

    Good catch. Immediately after submitting the piece I realized the error. It should read "you save 65%, which means you're spending 35%"

    Best,

    Brian Stoffel

  • Report this Comment On April 07, 2014, at 5:39 PM, sugarbritches wrote:

    The main thing that can ruin one's retirement is the loss of a job two years before the planned retirement. It appears that many people actually lose their jobs close to retirement time and oftentimes they do not find another one. I called it "forced retirement".

  • Report this Comment On April 07, 2014, at 7:32 PM, Stelios22 wrote:

    @sugarbritches: Dead on. For me it happened 4 years before I planned to retire when the company I was working for went out of business. Very tough to get another decent job. All the more reason for people to allow for some slack in their plans. Plan to have enough to retire by at least 2-4 years before retirement age. If you are lucky enough to keep working, then you'll just have even more fun at retirement!

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