"If you asked someone to pick out two online personalities that have large followings around financial advice, there is a better than good chance that Dave Ramsey and Suze Orman are going to be mentioned. These two individuals, with their larger-than-life personalities, have created legions of fans with their strong financial advice spanning everything from buying a home, car, and how to retire properly."
"To Dave's point, he doesn't believe you need anything near what Suze Orman might say, as he thinks a $1 million nest egg, when properly invested, could generate more than $80,000 per year in income. At this income level, most middle-income families could safely retire, and it's likely enough to replace a strong percentage of their working income. Add to this pensions, Social Security, and the like, and there is every reason to believe that Dave's plan could work for many American retirees."
Two prominent financial personalities present contrasting retirement targets and strategies. Dave Ramsey promotes a $1 million nest egg, assuming sustained market growth, heavy mutual fund allocations, and the ability to withdraw about 8% annually while achieving roughly 12% average returns. That approach anticipates supplemental income from pensions and Social Security and aims to provide middle-income families with substantial replacement income. Suze Orman recommends a retirement target approximately ten times larger to ensure greater comfort. The suitability of either approach depends on actual market performance, individual income needs, risk tolerance, and available supplemental retirement sources.
Read at 24/7 Wall St.
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