Forget That Retirement Magic Number and Focus on Your Funded Ratio

There is no magic number that will guarantee sustainable retirement income so individuals should focus on the funded ratio instead, said Tim Noonan, Managing Director of Capital Markets Insights for Russell Investments. Noonan added that the funded ratio helps individuals understand the assets and liabilities in their own situations and informs them about investment strategy and spending policies. Furthermore, Noonan said investors that have built up exposure to equities and fixed income will need to redistribute to other asset classes as the Federal Reserve gets closer to raising interest rates.