Question: I've been investing regularly with BUYandHOLD and I also have some bank CDs and a money market fund. But I still don't know if I'm really saving enough. Having a comfortable retirement is a big concern. Any advice?

Sam T.

Answer:

Dear Sam,

You're absolutely right. Having enough money for retirement is a very reasonable concern. Far too many people are unwilling to address the issue, usually out of fear...so you're already on the right track.

You also have a nice mix of investments. You may want to consider adding some bonds to your portfolio -- either high rated corporates or municipals or a bond fund. All three are available from Freedom Investments. Click HERE for details.

$Tip: You can also read a previous column on closed-end bond funds HERE.

And, if you are not already doing so, have your stock dividends automatically reinvested in additional shares and invest regularly using dollar cost averaging.

You didn't mention whether or not you have a 401(k), an IRA or other retirement plans. You should be investing the max in such accounts.

The Ballpark Estimate

Now, to your specific question.

For a number of years, I have been recommending the American Savings Education Council's interactive calculator. Called The Ballpark Estimate, you'll find it at: www.asec.org/ballpark.

It's very easy to use and will tell you how much you need to save every year to have a comfortable retirement.

Keep in mind that it estimates your retirement needs will be 70% of your current annual income. That's a little on the high side for most Americans, so you may be able to save slightly less than the bottom line figure the calculator spins out.

Before entering all the information, read the "Frequently Asked Questions" section -- especially if you are married or have less than ten years to retirement.

Good luck!