How do you determine how much money you need to save before retirement?

November 05, 2007

Posted by DanielleR

( 1 rating )

Check out this "Retirement Calculator" featured on Yahoo! Finance. You may have to make some estimates and it will not provide you with an exact number, of course, but it may give you a nice ballpark figure. Be sure to reevaluate things as your lifestyle and/or the economy changes.

http://finance.yahoo.com/calculator/retirement/ret-02;_ylt=AiLa5sJmT13w8mafTMuXade7YWsA

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October 31, 2007

Posted by bowtie

( 2 ratings )

The answer to your question can be estimated based on your lifestyle and the money required to continue your desired lifestyle. A person with a lifestyle that requires $20k to live will need a larger nest egg than someone whose lifestyle requires $100k a year to live.

For example, if your nest egg at retirement is $1 million dollars (not counting assets), and is invested in an investment vehicle yielding 6% per year then you can expect an income of $60k.

Most financial planners say you’ll need 70 percent or more of your current income to retire comfortably.

Sit down with a financial adviser and work out your retirement plan on paper. Track what you are spending now, what your expenses will be when you retire, your debt, your obligations such as family, and learn how much you need to get there.

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