Retirement is a time that many people look forward to, as it signifies the end of working life and the beginning of a period of relaxation and enjoyment. However, in order to truly enjoy your retirement, it’s important to start thinking about your retirement savings well in advance. One of the questions that often comes up when planning for retirement is, “how much do I need to retire?”
The answer to this question can vary greatly depending on your lifestyle goals and expenses. However, there are some general guidelines that can help you determine how much you need to save in order to comfortably retire.
One rule of thumb that is often used is the “4% rule.” This rule suggests that in order to have enough money to retire comfortably, you should aim to save enough to be able to withdraw 4% of your retirement savings each year. For example, if you have $1 million saved for retirement, you should be able to withdraw $40,000 per year to cover your expenses.
Another important factor to consider when determining how much you need to retire is your planned retirement age. The earlier you plan to retire, the more money you will need to save in order to finance a longer retirement. Additionally, factors such as inflation, healthcare costs, and unexpected expenses should also be taken into account when calculating how much you need to retire.
It’s also important to consider where your retirement savings will be coming from. Social Security benefits may provide some income during retirement, but it’s generally not enough to cover all of your expenses. In addition, employer-sponsored retirement plans such as 401(k)s and IRAs can be valuable sources of income during retirement, so it’s important to save as much as possible in these accounts.
Ultimately, the amount of money you need to retire will depend on your individual circumstances and goals. However, taking the time to create a retirement savings plan and regularly reviewing and adjusting it as needed can help you reach your retirement goals and ensure a comfortable and enjoyable retirement. If you’re unsure about how much you need to retire, consider speaking with a financial advisor who can help you create a personalized retirement savings plan tailored to your individual needs. Planning early and regularly reviewing your plan can help ensure a financially secure and enjoyable retirement.
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My suggestion is to carefully track your expenses for an entire year prior to retiring. This will tell you how much you will need per year. From that, you can determine how much of a nest egg you must have in order to retire.
….and the guy posting is a CPA. I know that CPAs aren’t wealth managers, but he should know better
You’ll need $1.2m, not $1m, for $4k/month at 4% withdrawal rate.
$4000 with NO MORTGAGE??? What are you spending your money on???
Then you get cancer and are broke
Wow. I just could not stop watching. This man is a literal dumpster fire.
Wow. I just could not stop watching. This man is a literal dumpster fire.
Bro…. You aren’t taking into account if they will need long term care when they are older and can’t wipe their butts… smh
You are not counting social security
What about inflation? Or is that the 4% rule?
Is the $4000/mo including , or in addition to his Social Security benefits?
Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pay off mortgage as a near-retiree, or spread money in stocks for cashflow? I'd love to afford my lifestyle even after retirement?
Wrong because he's not including social security. They will need a whole lot less
You forget also that your wife may work as well. Dual income makes retirement that much easier
You will never have enough until you drop the ego and realise MOST of your money goes on how you "want" to look to others.
The majority of people CAN live a nice peaceful life on 1500 BUT that little voice says we need!! the car, the tech, the Instagram locations, just so they can fill that GAPING HOLE in their lives called
… I N S E C U R I T Y
Because 68% of the population isn’t stupid enough to try and live off 20k a year.
The wide majority of people will not even achieve saving $500K. Also the financial folks are basing your savings for 30yrs after retirement, which alot of us ain't going to make it to 95yo. Be reasonable in how much you really need, including SS, 401K, IRA & personal savings.
My wife and I are both veterans she makes 4500 in Va comp per month I make 2292 in VA comp. She is in employed I make 6066 per month from my job. My question is how are some people able to retire on 4k or less? I feel like I would need at least 15k per month to retire on.
$500,000 yields $20,000 a year using the 4 percent rule. Add in the average social security check of $1800/month which is $21,600 in a year you have $41,600. Assuming no mortgage that is enough for a single person. If married even if we assume the spouse never worked they can also claim a spousal benefit of $900/month or an additional $10,800 per year. Add that to $41,600 and you have $52,400. More than the $48,000 ($4,000/month) need that was qouted in the video