The other day I wrote about a simple formula to calculate what you need to save for retirement in a post called “What’s your retirement number?”,
It’s the million dollar question… How much do you need to save for retirement? In that article we calculated your retirement needs in literally 1 minute.
But that level of simplicity doesn’t tell the whole story.
Today, we’re going to dig in a bit deeper.
7 Minutes For A Better Retirement
If you remember the other day, we simply took your monthly expenditures in retirement, and did a little calculation.
This was the formula: Monthly retirement expenses multiplied by 12 months = Annual Expenses
Annual Expenses Divided by 5% = Needed Retirement Savings.
Easy as pie. But we left some stuff out.
Do you really need $1.2 million to retire? When doing our calculations, we figured you’d need $1.2 million to retire.
That’s a lot of money!
The reality is, when you calculate your retirement number, your actual needs might be a bit lower.
Let’s stick with our original assumptions. You need $5,000 a month or $60,000 a year to retire.
In the other article we only focused on what you’d need to save. We ignored other income streams like Social Security.
Will You Receive Social Security?
To read the rest of the article, got to NetPicks.com.
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