Financial Literacy Quiz

For those of you who want to test your financial IQ, here is a 17 question test. Annamarie Lusardi, a professor at George Washington University, and one of the researchers who created the Five Steps educational program, says that answering approximately 11 out of 17 questions correctly indicates financial literacy.

How Much Money Do You Need to Retire?

Kathleen Pander at SF GATE recently investigated this question. The article is worth the read. Here is a quote:

In its sobering survey, the Employee Benefits Research Institute found that 36 percent of workers have saved less than $1,000 and only 11 percent have saved $250,000 or more. But that includes workers of all ages. In a separate study, the institute predicted that 53 percent of workers will have enough resources to meet expenses in retirement.

The article looks at different ways to determine how much you need to have saved when you retire. It draws on suggestions from Schwab, Fidelity and T. Rowe Price. Just read it.