LAW87,
I, personally, use the 'Retirement Calculator' in Quicken Premier. It is just one of the many, many reasons to purchase that product. The 'Investment Performance' report is an amazing tool as well - as is the 'Debt Reduction Planner'.
You also don't want to look at the actual assets required in dollars for a number fourty years in the future. Inflation (which will also affect how much you contribute and hopefully how much growth you attain) will bloat those numbers tremendously. An inflation adjusted number is more realistic for someone fourty years in the past - meaning now
.
What I would do is look at the salaries a 50 year old makes in your field (whether military or civilian) and place that in the retirement calculators as a goal. Those tools will tell you what you have to invest. And, at your age highly emphasize equities (C/S/I in our choices) which will give you (inflation adjusted):
C: 7.5%
S: 8.6%
I: 8.0%
Cash will earn you an amazing 0.1% while our bond fund will give you 3.3% (inflation adjusted).
At 25, assuming 30K salary, contributing 10%, no match, no savings, an inflation adjustment of 3.1%, and increasing contributions with inflation just keeping your money in the C Fund will most likely provide: $2,114K in todays money, $46,000 a year from age 65 through 100. By the way, in non inflation adjusted mullah you are talking about pulling out $156K in your golden first year of retirement - see how wierd that look
.
Also, be aware, you will not be able to really access any funds in any 401(k) or any IRA before age 60. Also, your pension will most likely not be available till age 60 or so. Finally, pensions can be jiggered by politicians on the public side and affected by reality on the private side. I much concur with BT. Folks are scared of 401(k)s because of the volatility. What they should be concerned of is pensions with odd ball calculations that can be changed without your consent and which are not vested till you work forever for an entity and attain a retirement age (again based on the whims of someone other than you).
Happy hunting...
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