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What amount should I have saved up to live without worries? No one, not even my broker wants to give me an answer!

Hi Danny312,

I think you get the idea from the other answers why it may be rather difficult to answer your question. I personally started seriously planning my retirement financial strategy about three years ago, but I keep changing and adjusting it as I go and I discover new sources of income and/or expenses. There are three really tough parts to address, the first is knowing exactly how much you will actually spend, the second is knowing how much you will make, and the third is knowing how long you will live.

How much you spend depends on where you will be living, what types of expenses you have, and what you plan to do when you are retired. Some of the key expenses you need to estimate are:
- Federal, state and local taxes (i.e. income tax, property tax, sales tax)
- Private or supplemental health insurance
- Rent and/or property maintenance
- Loan payments
- Food, utilities and entertainment
- Other personal expenses (medications, car maintenance, auto/life/homeowners insurance, cell phone, gifting, charitable donations, etc.)
- Dependents (if any)
- Travel
- Inheritance to wish to leave for your loved ones
- Will you be moving to a different country, state or county before or after your retire? And if so, adjust expenses accordingly.

Then you have to determine how much you will be earning.
- SS (defer or start drawing at 62?)
- Investment income
- Part time or full time employment
- Sale of property
- Annuities (if any)
- Inheritance from those who love you

Estimating how long you will live, or however long you intend to support yourself on your own savings, is an essential data point to help you determine when you will run out of money. Of course, you may also have someone support you as a dependent before you die. I've generally used 80 years as my target, that's longer than either of my parents lived, but about 15-18 years less than some of my father's relatives.

I may have missed a bunch of stuff here, but without some figures (or at least reasonable guesses) for these things no one can really answer your question but you.
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