Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

How much for retirement?

11/10/2013

0 Comments

 
Picture

This is an extremely popular question. There are websites dedicated to this one question and countless books. Here is the problem! They all come up with a different number. Why? Because they all use different assumptions and none of those assumptions are wrong. Life is highly unpredictable!

As a demonstration of this reality, we're now seeing an entire generation who has not saved enough or who did not plan on such a bad a stock market.

With that said, I can protect you from most of that. Yesterday you decided (at least temporarily) how much per year you wanted to live off of for retirement. Now take that amount and divide by 4% (0.04). If you want to be conservative divide by 3%. I'll discuss the difference tomorrow.

So theoretically, you can do what you want for $35,000 per year. That gives you (35,000/.04) $875,000 in assets that you will need to accumulate before you can retire. Now compare that with how much you have.

Since most of you just soiled yourselves. Go put on a new pair of underwear and regroup. The good news is you're way ahead of the game because the vast majority of Americans don't even know what they need to shoot for. They roll up on 65 with $100k and they think they're in good shape.

So now we're getting somewhere. If you decide to work part time while in retirement, then you can save yourself $125,000 in assets per $5,000 dollars that you make from working.

0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.