Frederick Vettese

And as I said, I don't really know where this came from.

I found one source in the U.S.

where they only were able to figure out about 55%, and the last 15% was like tar, like, you know, you have it on a cigarette package.

It seemed like it was tar, as far as I could see.

They didn't actually even define it, but they had to find some way to get up to 70% because that's what they were told to do.

The industry has a great impetus for wanting the number to be 70%.

The investment managers may make more money if you have more assets with them.

So there'll be more assets that you're saving for 70 as opposed to a smaller number.

Governments, they have pension plans which produce 70% or more.

So obviously they're not going to tell you that you don't need 70%.

It's hard to find somebody actually who will say that.

Of course, Malcolm Hamilton, who was my mentor for many years, he's been saying this for the longest time and I simply took over.

So I actually finally tried to really pin this down in my book, The Rule of 30, where I took a typical couple and the kind of expenses that they're going to have over the years.

And then if you subtract off income tax, you subtract off daycare, saving for retirement itself, mortgage payments and everything else, and you see how much money they actually have left for the rest of their lives.

It tends to be only 35%, 40%, actually not even more than 40% for most of their lives up until they're maybe close to age 50.

And after that, then the mortgage might finally be paid off, so that drops off, and that's a big number.

Daycare drops off as soon before that.

The kids might finally leave home and go to college and maybe, if not be totally financial self-supporting, they're not quite as expensive as they used to be.

And all of a sudden, you have a lot more disposable income.

So the question is, what are you going to do with all that disposable income?