I'm 26 and would like to have $1.5 million before I can retire. If it takes me until my mid-60s to accumulate that much, with inflation it will be close to $6 Million. How much do you plan on needing?
2006-10-04 14:20:44 · 7 answers · asked by Jason M 2 in Business & Finance ➔ Personal Finance
It is not so much a matter of dollars and cents. It is more a matter of learning to live well within your means. It you can live on half of what you are making, packing the other half into a CD or bond, you won't have to worry about your retirement.
2006-10-04 14:54:35 · answer #1 · answered by north79004487 5 · 0⤊ 0⤋
The general rule is take all your annual present day expenses (and any reasonable expenses you will have in retirement) and multiple by 25 to determine the total nest egg you'll need. Don't forget to include company pensions and social security (if you think it'll be there).
I suspect the reason you estimate you'll need 6 million is due to inflation. In my retirement calculations, I plan to adjust for inflation every two to three years instead of annually.
Mike's Secret Wealth Strategy:
You will get raises and promotions between now and retirement. With each raise, you'll take home X additional dollars each paycheck after taxes. Divide X by 2. Half goes to retirement and half is yours to spend. Amazing things will happen over the next 40 years.
Mike Honeycutt
2006-10-04 14:30:54 · answer #2 · answered by mahoneycuttnc2002 6 · 0⤊ 1⤋
I'm 23 and and agree that our generation is going to need a lot to have a comfortable retirement. I'm the type of person that lives well within my means. I hope to have about $1mil saved by the time I retire which will be about $2.5mil if inflation averages 3% a year. Of course I want to retire when I'm 50, so I need to save about $15,000 a year until then to reach my goal. This will get me $50,000 a year for 30 years of retirement.
2006-10-04 20:38:07 · answer #3 · answered by Amanda 3 · 0⤊ 1⤋
$3 million in about 25 years.
2006-10-05 01:10:41 · answer #4 · answered by derek 4 · 0⤊ 1⤋
Not sure about numbers, but think that a lot of people are living past they are 80 years old, so you need a lot of money.
2006-10-04 14:47:08 · answer #5 · answered by wazup1971 6 · 0⤊ 1⤋
..i don't need too much money when i'll retire as long as a have a house where i can stay-in , clothing, and other basic needs of a human being...i only need enough money for my food, for other expenses, and for other emergency cases...
2006-10-04 19:39:30 · answer #6 · answered by Anonymous · 0⤊ 1⤋
hundreds of dollars cash
2006-10-04 14:27:59 · answer #7 · answered by Anonymous · 0⤊ 1⤋