PROVO — The happiest income level in America is $40,000, said Scott C. Marsh in his Campus Education Week class on "More Money Than You'll Ever Need."

That figure, according to Harvard research, is enough to satisfy most Americans. They can pay their bills and meet their everyday needs.

For many people, however, making 10 percent more than they make now would help them realize their financial dreams. However, saving 10 percent of one's income would give most people more than they would ever need for retirement if they started soon enough.

He also described how to get to the "point of choice" — having enough income-producing assets to no longer worry about money.

Using the annual income of $50,000 as an example, he said the point of choice for a 60-year-old looking to retire at age 65 is $1.5 million in assets by that time. His income by then should be $60,000 annually.

Marsh offered these scenarios for other age groups to achieve the same spending power when they turn 65:

• 50-year-olds would need $2.3 million in assets, making $90,000 annually;

• 40-year-olds would need $4 million in assets, making $133,000 annually;

• 30-year-olds would need $6 million in assets, making $197,000 annually;

• 20-year-olds would need $8.5 million in assets, making $292,000 annually.

Marsh gave four ways to arrive at those figures by retirement:

• Buy a home. Many older folks without a retirement plan resort to reverse mortgages so they can live off the equity in their homes. He suggested people plan early to avoid that scenario.

• Have a 401(K) retirement plan at work.

• Reduce debt using an accelerated debt repayment plan.

• Make "million-dollar choices" in investments. (Borrowing money to invest is usually not a wise choice, he said.)

Two other ways to reach financial goals include owning real estate that produces an income or owning a business, he said.

Retirement 401(K) plans work well because the financial work is "done by someone else" and the money is taken out before the employee ever sees it. Withdrawal penalties keep the plan intact, he added.

Saving 10 percent a year with average incomes starting now would give 20-year-olds $14.5 million by retirement age, 30-year-olds $4.5 million and 40-year-olds $1.5 million.

Most people in America — about 96 percent— make their monthly payments on time, paying an average of $2,500 a month toward debt. The goal, he said, is to get out of debt so people can keep that money for themselves.

He suggested people search the Web site www.powerpay.org and read "One for the Money" on www.lds.org.

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E-mail: rodger@desnews.com