2006-07-23 05:49:20 · 7 answers · asked by Gone fishin' 7 in Business & Finance ➔ Investing
Depends on your living style.
In some parts of America you can live like a king on fifty grand income per year.
A life of working and saving that gets you several hundred thousand dollars won't go very far in these times.
Yet, that's what most people accomplish.
Factor in many living longer, and it's no wonder the deficits keep mounting and the burdens get worse all the time for the taxpayers.
In a money world, no sum is ever enough.
Unless you get lucky, most people won't ever have enough no matter how many jobs they take on or how determined they are to stick to a good savings plan.
2006-07-23 06:18:35 · answer #1 · answered by Anonymous · 2⤊ 1⤋
It all depends on what sort of lifestyle you expect to have in retirement. If you plan on getting a place in Mexico and enjoying the low cost of living, you can get away with less. If you plan on travelling, going back to college, or taking up any expensive hobbies in your golden years, you'll need more.
A rule of thumb used by retirement planners is that you can safely withdraw about 4% of your nest egg per year. So if you have $1MM in the bank right now, that would provide annual income of about $40,000. If the rest is properly invested, it will continue to grow over time, thus helping to inflation-proof itself.
This isn't exactly a life of luxury, but it's better than most Americans are doing. The median retirement balance for workers 55 and older, the people getting ready to retire soon, is $50,000. So aside from home equity, that's the entire amount of funds they'll have to retire on.
Finally, don't forget about inflation. By the time I retire (somewhere around 2040), prices should be about twice what they are today. Consequently, I'll need twice the nest egg. If your retirement is more than a decade away, you might want to look into that.
2006-07-23 14:52:59 · answer #2 · answered by Rondo 3 · 1⤊ 0⤋
For me, about $2MM. With that amount, I can generate $60,000-80,000 in annual income using bonds or dividend paying stocks. This is like getting an annual salary without work. I will still need to save and invest for retirement, but this will help a lot.
2006-07-23 13:01:55 · answer #3 · answered by Anonymous · 1⤊ 0⤋
The amount which fullfills your all needs and luxeries.
2006-07-23 13:00:08 · answer #4 · answered by plusonefriend 1 · 1⤊ 0⤋
Not much if you move to Mexico.
2006-07-23 13:42:09 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You will have to win the Lottery.
2006-07-23 12:52:45 · answer #6 · answered by Gabe 6 · 1⤊ 0⤋
a lot, its not how it used to be. everything is so expensive.
2006-07-23 13:16:57 · answer #7 · answered by Gabriella M 3 · 1⤊ 0⤋