Summary
You may have a specific vision of your retirement - traveling the world, downsizing to a beachfront cottage or spending time with your hobbies, friends and family. Or perhaps your vision of retirement is not as specific, but is simply based on the feeling you want to achieve - you are looking forward to some peace of mind, relaxation and security. Either way, are you confident that you are putting away enough money to fund the retirement of your dreams? Do you know how much money you will need for your retirement essentials?
Based on the calculations above, the hypothetical 40-year-old would have a nest egg of $855,720 at retirement (adding $450,685 and $405,035). Is that enough? He would have to factor in social security and home equity. As a general rule: your nest egg and supplemental income should generate between 70 and 100 percent of the income you are making just before you retire.Divide what you still need-to save for retirement by the number of years you have left before you retire and the result is the approximate amount you may want to set aside each year, leading up to retirement. If your annual retirement savings need is too great, you may want to consider delaying your retirement for a few years or creating a transition into retirement by working part-time to continue creating additional income.See the full content of this document
Extract
Measuring Your Nest Egg
You may have a specific vision of your retirement - traveling the world, downsizing to a beachfront cottage or spending time with your hobbies, friends and family. Or perhaps your vision of retirement is not as specific, but is simply based on the feeling you...
See the full content of this document
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