Friday, March 20, 2015

The Cost of Staying in Coffee

Most of us are worried about a lot of different financial burdens in our retirement: medical bills, travel, leaving a legacy for our heirs. But BlackRock, the world's largest asset manager, has a new study out examining another very important retirement expense: coffee.

The number that BlackRock came up with was about $21,000 for coffee over a 30-year retirement. That figures two dollars for coffee every day, or about $700 a year. But that's not the end of the story. With our investments working for us, how much do we need to have saved to keep us in java throughout that retirement?

BlackRock used actuarial tables to figure that a 55-year-old needs $10,163 in savings right now to stay caffeinated during a retirement that starts at age 65. Whether you think that's a bargain or a lot of money probably depends on how much you need that cup of coffee every morning.

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