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Well in depends on the state really. But starting now a person who owns a home of middle class standards can live nicely on 75,000 per year then a increase of 3% per year. That has worked well for decades. A renter living in a 1200 a month rental home will need 14,400 this year then figure a 3% increase average per out going year to live in similar home.The owner will need about 500 plus the same 3% on average per month increase to maintain the home.
its a hard question to answere, in fact im not totaly clear on the question? are you talking to retire on in your nest egg? if your talking prior then a good amount is "less then you spend and save 15 to 20% of what you earn
a ball park is 25x what you need to withdraw........ so if you wanted to pull 75,000 a year inflation adjusted you need to start with 1.8 million and earn 7% a year average return ...typically a 50/50 mix of equities and other asset classes will give you close to that over decades...if inflation stays around 3% that will give to a 95% chance of not outliving your money well into your 90's
you could pull it from less but your chance of not out living your money shrinks drastically
Last edited by mathjak107; 07-30-2009 at 03:28 AM..
its a hard question to answere, in fact im not totaly clear on the question? are you talking to retire on in your nest egg? if your talking prior then a good amount is "less then you spend and save 15 to 20% of what you earn
a ball park is 25x what you need to withdraw........ so if you wanted to pull 75,000 a year inflation adjusted you need to start with 1.8 million and earn 7% a year average return ...typically a 50/50 mix of equities and other asset classes will give you close to that over decades...if inflation stays around 3% that will give to a 95% chance of not outliving your money well into your 90's
you could pull it from less but your chance of not out living your money shrinks drastically
Don't believe these high numbers these folks are spewing out. I have lived a fine lifestyle on less than 16,000 a year income. I do alot of traveling on this amount. Most people will retire on less than 20,000 a year. "Retirement" was unheard of prior to WW11. Whatever they tell you that they themselves retired on; you can divide that amount by 4 then substract $30,000. Check out this retirement site. About Us
Last edited by Missourimomo; 07-30-2009 at 04:17 PM..
what each one of us needs to live on is very personal to each of us.... if your going to err my choice is let be by over planning and saving.....the retirement graveyard is filled with the failed retirements of folks who forgot even at 3% inflation, prices and their withdrawls have to double almost every 20 years.....
the idea for alot of us is to have a better life in retirement then we did when working, we scrimped , we saved , we spent our time working... now we want to reap those rewards and not to have to live a life of denial and dumpster diving to survive on whatever income you can muster......
theres books and sites that will give you all kinds of ranges for ball parking your withdrawls.... i tend to like fidelity investments retirement planner....it runs thousands of scenerios and comes up with what might give you a 95% chance of going to age 95 without out living your money...... under plan or over plan , its up to you to decide
as a retired person I can tell you this........
Own your own home, own paid for vehicle(s), take good care of your health and slow down your lifestyle and learn not to "want" so much then the amount of money in the bank won't mean squat as long as you can feed yourself and pay the light/heat bill.
Millions of folk's who had money saved for retirement were wipeout in the down turn so you simply can't count on any sort of nest egg to carry you.
Think otherwise at your own peril.
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