Anyone who imagines they can retire with $250K in the bank is delusional.
Concur. The truth is you probably need enough to maintain 75% of your current “working” income. Say you make $100K/year, then you might need $75K. Say about $25K of that comes from SS. To generate $50K per year of income (w/out touching your principal), you would need ~ $1.7M (assuming you’ve got a CD yielding 3%).
Its probably slightly better than that because you can draw down your principal if you assume a reasonable time horizon for living (let’s say 20 years max after you retire). But you also have to adjust for inflation.
So.....my estimate is that $1.5M is really the current minimum if you want to maintain a middle class lifestyle.
posted on 11/17/2011 4:19:15 AM PST
Easily it must be savings in excess of 1 million.
When I hear of people who have not begun to save, I am in amazed!
posted on 11/17/2011 4:52:34 AM PST
(I LOVE BULL MARKETS . . .)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson