3 ms·
The basic rule of thumb advocated is to assume a 3-4% safe withdrawal rate in retirement. So for example, if you want a $30,000/yr (inflation adjusted) income
by nly 5y ago
The basic rule of thumb advocated is to assume a 3-4% safe withdrawal rate in retirement.
So for example, if you want a $30,000/yr (inflation adjusted) income in retirement you need to save yourself a $1M (inflation adjusted) pot. Over a 30 year career with a 5% (real, above inflation) investment return that takes $1,200/month.
Lots of people think saving a couple of hundred bucks per month will leave them super comfortable. The math tells the scary reality.
- SCNP 5y agoI have this "fun" slider on my retirement account's website that shows different values for different retirement ages. In order to hit my minimum, I had to slide it all the way to age 85. "FUN"