Retirement Savings: You’re Doing It Wrong – Wall Street Journal – 04/01/14

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Retirement Savings: You’re Doing It Wrong

The vast majority of Americans with access to 401(K) plans use them, but nearly as many don’t use them correctly. Barron’s Jack Hough joins MoneyBeat with tips on setting up the best retirement strategy.

Among 55 to 65 year-olds, about 70% have either less than 20% in stocks or more than 80%.

Among 25 to 35 year-olds, almost a third have 80% or more in cash.

Across all age groups, 401(k) Participants tend to stick with either stocks or cash while keeping less than 10% in fixed income.

Recommended savings rate: 15%. But workers have half that, including employer contributions, which are typically 3% to 4%.

Source: T. Rowe Price / Barron’s Reporting

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