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Table: After the Market's Fall


Investors have been hit hard by the stock market's fall since March 2000: American Express Financial Advisors calculates that an all-stock portfolio (65% large-cap, 20% small-cap, and 15% international) has lost 37.4%. Here's how three would-be retirees would have to adjust their plans to make up for the loss if they still want to retire with $100,000 a year (aftertax) in current dollars:

RETIRING SOON

Age Now: 58

Target Retirement Age: 62

Portfolio Value January, 2000: $1 million

Portfolio Value Now: $625,600

CHOICES

-- Postpone retirement to age 68

-- Save an additional $120,000 a year

-- Plan to retire on income of $60,000

-- Combination: Save $18,000 more a year, retire at age 65 on $95,000 income

MIDCAREER

Age Now: 50

Target Retirement Age: 62

Portfolio Value January, 2000: $505,000

Portfolio Value Now: $315,900

CHOICES

-- Postpone retirement to age 67 1/2

-- Save an additional $33,500 a year

-- Plan to retire on income of $60,500

-- Combination: Save $9,000 more a year, retire at age 65 on $96,000 income

JUST PLANNING

Age Now: 40

Target Retirement Age: 62

Portfolio Value January, 2000: $180,000

Portfolio Value Now: $112,600

CHOICES

-- Postpone retirement to age 66 1/2

-- Save an additional $10,250 a year

-- Plan to retire on income of $69,000

-- Combination: Save $4,000 more a year, retire at age 64 on $97,000 income

Data: American Express Financial Advisors


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