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Author: gchin2 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75626  
Subject: Monthly retirement expenses $17k+?!, Date: 7/11/2005 3:30 PM
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I've been playing around with a retirement calculator that I received from someone on the Fool boards. It's a great calculator because I can calculate how much I plan to spend each 5 years of my retirement and see how long my savings will last (w/SS, pension), and unlike the other calculators on Fool, Vanguard, etc. I can see all the numbers on the spreadsheet so I know exactly how things are being calculated.

But I've been entering my cost of living at current figures. I just realized that I should be entering my cost of living 25 years from now. So I calculated out my current expected retirement expenses at $5500 a month. At 4.7% inflation for 25 years, I get $17,339. Is that possible? Will I really be spending what is almost 2/3 of my current salary PER MONTH 25 years from now?

At that rate, I'll never save enough for retirement. I thought I was going to be set at $1,100,000. But if this inflation calculation is correct, then I need to save over $3,500,000. And that will never happen. Not with our current income and two kids. I'm so disheartened. Am I totally off on this?

Gchin2
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