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Originally Posted by genchan
How much money does a person need to retire comfortably? Is there a basic standard to go by?
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First you need to know how much would make you comfortable now. Then, figure out what your life will look like at retirement. My thoughts are that you will probably need pretty close to the amount that you now live on. So, if it is $50,000 per year, and you will be retiring in 20 years, you will need $90,300 to buy what $50,000 buys now (factoring in 3% inflation).
It is recommended that you have enough money in a retirement nestegg so that you only have to make a 5% withdrawal each year to get your desired income. So, to figure that out, if you desire $90,300, divide 90,300 by .o5 and you get the grand total of $1,800,000.
Of course, you may be able to get by on less than that. But, keep in mind, you don't want to retire and have to live on bread and water.
JLP
http://AllThingsFinancial.blogspot.com