when do you usually retire?

Question

im 20 now and i think im going to retire in 55 years, but that sounds way too much! is 55 years way too much, or is it too little or just right?? SOS!!!!!!!!

Answer 1

They key to when you can retire is when you can live off the money that your pile of money can make. That is, you need to have enough money to reasonably assume that you can take the interest every year and live off of that without touching the principle and preferably allowing the principle to grow some each year to offset inflation.

Let me give you an example. Let's say that you want to retire and will need $50,000 per year to live the life that you want. Now you need to decide at what rate you will expect your nest egg to grow. The stock market has averaged about 12% over the last eighty or so years, but let's be conservative and say we will expect our money to return an average of about 10%. Some years less, some years more, but an average of 10%.

To offset inflation, we will leave 3% of that alone. To keep this simple, let's assume that we will be drawing from a tax sheltered investment such as a Roth IRA. That way, we won't have to worry about paying capital gains taxes.

Therefore, we plan on needing $50,000 a year and will estimate that our money will return an average of 10% and we will leave 3% to account for inflation. Therefore, we will be drawing out about 7% per year. Using these assumptions we need a nest egg of about $750,000 in order to retire.

Make your own assumptions, set the goals of how you will get there, then go and make it happen!

Hope this helps!

Answer 2

I would say to start saving! You retire when you feel you have enough to survive. 55 yrs old sounds right if you play your cards right. 75 is too old. You should enjoy your life at some point. How much can you start putting into the highest yielding savings account you can find? Stick to that amount because your future life depends on it and increase it when you can. The One from american express charge card I got puts 1% of all my charges into a savings account yielding 4% and I put as much on there as I can and pay the balance off in full each month. When you have money in savings you can put it into CDs and stocks and things and make your nest egg HUGE!!!

Answer 3

Retirement depends on how aggressively you save $$$$ .
There are 80 yr old people working because they have no retirement plan . ( lots of Americans do not get social security because the company they worked for was not part of it or they work for the post office )

One guy retired from IBM at age 60 and has been working anther job since ( he is now 101 )

Retirement all depends on your ability to save and invest ,
But many people are physically worn down by 55
( for you 35 years from now ) .

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Answer 4

Good question. It all depends on the vehicle you are in. By vehicle I don't mean mode of transportation, however, I mean financial engine. Your key to long-term financial success is to get into an ownership situation, duplicate yourself, and create a residual natured income stream that continues to pay you when you are done working. I have met people who have retired in their twenties and I have met people at 70 who are still working. They just had different vehicles. Working smart will win over working hard any day and as a young person, be careful that you do not fall into the rut system because before you know it you will be 40 an unhappy, wishing you could turn back time. Hope this helps and good luck.

Answer 5

You might be able to retire a little sooner than that, but not a lot. Full social security retirement age now is 67 but could well be raised again before that. Many people retire before ss retirement age.

Answer 6

65 for some of us.

many Americans will never retire though... too much debt, cost of living too high... they are broke and will work most of their lives.

if you don't want to be 65 working at wendys cause you need the money, save like crazy and avoid debt NOW.

Answer 7

start saving your money now.