Monthly Archives: May 2014

Graphic: How Much Should You Have Saved Up for Retirement Today

The table shown in the image is a savings calculator tool. The table aims to be a guideline to help savers understand how much money they should have saved in preparation for retirement if they have been saving about five percent of their salary.

How Much Should You Have Saved Up for Retirement Today

The table is broken into two categories; on the y axis is the age category, beginning at thirty years and ending at sixty five years, with five years intervals in between; on the x axis is salary, starting at fifty thousand dollars and ending at four hundred thousand dollars.

To use the table a person must first find the number closest to their age on the y axis and then the number which closest approximates their salary on the x axis. At the intersection of these numbers will be another number, which, when multiplied by the salary, will indicate the amount of money a person should have saved.

Graphic: Growth of a Retirement Account From the Age of 25

Saving is always important. It is considered a good practice to consistently set aside part of each of your paychecks when you are young to have money later. It is equally important to continue saving even after you grow older. As This chart from Business Insider shows, there are major differences between individuals who not only start to save money early on, but continue to save money throughout their career.

Graphic: Growth of a Retirement Account From the Age of 25

A twenty-five year old who saves five thousand dollars annually between the ages of twenty-five and thirty five is expected to have a nest egg of one million dollars by the age of sixty five.

A person who starts saving from age thirty five will have considerably less at five hundred thousand or less, but will still have a good cushion for retirement.

Saving early can actually turn into earning later on. Simply this is because the longer investments have to mature, the higher the return they will have. On average a person who only saves and invests $5,000 annually between the ages of 25 and 35 will actually have more money than someone who starts saving at the same rate from age 35 to 65.

2014 Looks to be the Most Active IPO Market Since 2000

After a peak of IPO activity at the end of the 20th century, we could be seeing a new trend of rising IPO activity caused by a combination of economic turnaround and a plethora of companies ready to go public. IPO activity has mimicked general market trends over the past decade and a half.

2014 Looks to be the Most Active IPO Market Since 2000

In 2000 US IPO activity experienced a surge that nearly doubled the average rate, therefore there were about eighty three IPOs in that year. Conversely, the mid 2000s and the year 2009 showed a sharp decrease in IPO activity. Numbers fell from an average of forty to ten and below. In 2009, there was only one IPO registered.

Currently we are seeing another rise in IPO activity as markets rebound from the Great Recession. Possibly we are also seeing companies that would have gone public earlier filing for IPOs now because of higher investor confidences and a more certain economic future.

Grpahic: Number of IPO’s With 100%+ First Day Returns by Year

In 1999 IPOs had a successful run, where one hundred and eighteen IPOs were able to produce gains on their very first days.

Number of IPO's With 100%+ First Day Returns by Year

In 2000 that number had decreased almost by half. Eighty four IPOs made gains on their debut.

The numbers experienced a sharp drop from the next year onward.

As noted in the chart above, which is a bar graph showing the numbers of IPOs which made gains on their first day, from 2000 to 2012, there was drought of immediately successful IPO first day gains. For this twelve year period, the biggest number of IPO gains was in the single digits, however, the average rate of IPO first day gains was zero, for that entire period.

IPOs experienced a sharp rise in 2013 when a whopping six IPOs made first day gains. In the next year, that number dropped down to four.

However these two years, 2013 and 2014 were the most successful years for the fourteen year period. These success may be a sign of some things to come as we see more established startups filing for IPOs as developed companies, and perhaps it also has something do with a general economic turnaround.