How Much I Need to Retire?
There comes a milestone in everyone's life where they sit back and decide they want to stop working and start enjoying life. The first question that often comes to mind is, how much money will I need to maintain my current lifestyle without running out of money before I die?
When searching for the answer to this question, take the following into consideration:
- At what age do you plan on retiring?
- Given family history and general health, what do you think your life expectancy may be? Check out www.livingto100.com for an estimate of how many years your nest egg will need to last.
- How much money would you like to have to live on during retirement?
- Will that amount change over time? If so, when and by how much?
- Do you wish to live off the interest your savings generate-preserving your wealth for your spouse and future generations-or are you comfortable spending down the principle over time?
- What is your risk tolerance? Although stocks are riskier than bonds, they can offer the potential for higher returns. Your risk level will dictate the rate of returns and be an important factor in your financial planning.
After you have determined the answers to these questions the best thing to do is sit down with a . Online retirement calculators are useful for rough estimates however a decision of this magnitude deserves professional advice and there are no one-size-fits-all solutions. |
