It's Retirement Tips from Britney, Bitch

Sorry. That's like the line from her new song. I couldn't help myself.

The Yahoo Finance page has a great article about how important it is to save for retirement. Well, it turns out Britney Spears spends over $700,000 a month, yet she doesn't save a portion of her income.

The article points out that "the overwhelming majority of American 20-somethings aren't saving anything for retirement, either. Research from Vanguard shows that two-thirds of all 25-year-olds who have access to a 401(k) plan aren't contributing." That is really bad.

Consider this -

"Assuming she could scrape by on 70% to 80% of her pre-retirement income in retirement - or about $590,000 a month in today's dollars - Ms. Spears would have to accumulate a nest egg of just over $300 million by age 65."

"Sound daunting? Nah. All she has to do is keep working and put away 8% or so of her monthly $737,000 income until she retires and she'll hit that goal."

Now, translate into normal recent college graduates' incomes -

"A 25-yr old making $30,000 a year, for instance, and putting away the same 8% of his pay into a 401(k) plan annually for the rest of his career is virtually guaranteed a comfortable retirement by time he hits his 60s."

Read the entire article here.