Set a Goal to Reach One Jennifer must ask herself how rich she wants to be. It shouldn't be difficult for her to guesstimate a gross yearly figure that would satisfy her lifestyle, then add a reasonable inflation factor of 3 percent a year. Any financial calculator can show you how much of a nest egg she'll need in 25 or 30 years to yield that yearly amount at a target retirement age. She should assume a yearly 10 percent return, both while building a stash, and after retirement. True, this is a rough retirement calculation.
Financial planers can be more specific.
I'll wager that Jennifer is already on the track, maybe even over-doing it. Not Your Parents' Economy Yes, Jennifer, there is a Santa Claus. It's called the new economy and it arrived just as most twentysomethings were entering the workforce. If Jennifer's parents are between 47-60 years old, the economy was a disaster of spiraling inflation and heavy spending when they first went to work. They apparently were smart enough to see it and save.