Chapter 1 of 2
The Wake-Up Call
Larry turns 52 and finally opens his 403(b) statement. $38,400. He runs the 4% rule backwards: at his current savings rate, he can sustain $1,536/year from savings in retirement. Social Security will cover the rest — but only if he waits until 67.
Key Insight
Larry needs $960k to replace his $64k salary at 4%. At his current $400/month savings rate, he'll have $187k by 65. The gap is $773k. Catch-up contributions and a delayed retirement change the math significantly.
Model This Scenario