| How much do i need to have in the bank. |
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tko
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| How much do i need to have in the bank. |
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How much do i need in the bank to retire comfortably. Nothing lavish.
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Sat Jan 16, 2010 4:22 pm |
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oldguy
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IMO, one million would be enough - allthough you wouldn't want to keep it in a bank. Invest it at 7% or 8%, spend 4% to live on ($40,000 for year #1) and leave the other 3% to offset inflation. This would be doable, but far from lavish.
Later, your SS check and your Medicare Heathcare will kick in and make it much easier.
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Sat Jan 16, 2010 5:41 pm |
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jefffou
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| Re: How much do i need to have in the bank. |
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quote:
Originally posted by tko
How much do i need in the bank to retire comfortably. Nothing lavish.
It's far too difficult to know the answer to that based on the information provided.
What is your age at retirement, you retirement asset balance at retirement, your life expectancy, your expected returns, your contributions during retirement, your withdrawals during retirement, etc....
A retirement calculator would come in handy here.
Jeff Fountain
Mutual Fund Advice
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Sat Jan 16, 2010 10:23 pm |
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Newstockslive
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The answer to that question depends on a lot of things. How much do you make now, do you have a mortgage, etc.
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Sat Jan 16, 2010 11:40 pm |
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oldguy
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It's not that difficult. Assume a non-lavish retirement, ie $40,000/yr in today's dollars - that provides food/shelter for a 'normal' lifestyle. Then set it up as an 'in perpetuity' fund. It continually adjusts the $40,000 upward to adjust for inflation, and the fund never depletes no matter how long he lives. So the fund grows at 3%/yr forever - and the $40,000/yr 'draw' grows at 3%/yr forever.
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Sat Jan 16, 2010 11:49 pm |
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jefffou
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quote:
Originally posted by oldguy
It's not that difficult. Assume a non-lavish retirement, ie $40,000/yr in today's dollars - that provides food/shelter for a 'normal' lifestyle. Then set it up as an 'in perpetuity' fund. It continually adjusts the $40,000 upward to adjust for inflation, and the fund never depletes no matter how long he lives. So the fund grows at 3%/yr forever - and the $40,000/yr 'draw' grows at 3%/yr forever.
True, OldGuy.
But you, in your post, made certain assumptions that weren't made by him.
You assumed for him his:
1. Asset Balance (A balance that could support a $40k Withdrawal amt.)
2. A Withdraw During Retirement (40k per year)
3. Contributions (zero...none necessary)
4. Life Expectancy (The same as the insurance company's life expectancy!)
5. Expected Returns (3%)
Your point is well-taken, OldGuy. It doesn't necessarily need to be complicated to get the job done.
Jeff Fountain
Mutual Fund Advice
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Sun Jan 17, 2010 3:15 pm |
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Elmira Nancy
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Determining how much money you need for retirement is a highly personal and complex decision. It depends on a number of factors, including the retirement lifestyle you desire, your target retirement age, and your life expectancy, While the general rule is that you need 70 percent of your pre-retirement income to retire comfortably, many CPAs suggest 80 percent or more as a more reliable figure, especially due to rising healthcare costs and increased longevity. Take some time to think through your responses to the following questions to help prepare yourself for the realities of retirement.
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Mon Mar 22, 2010 2:45 am |
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