No. of Recommendations: 0
What you really should do is figure out how much money you need to have the day you retire in order to supply you with the income you will need in retirement (tough since it is not a set "end date").

The calculations can get kind of messy, and it can take a long time, but if you are good at math and Excel, it shouldn't be a problem. Taxes, expected social security all that should be factored in. This is the type of stuff fee-only financial planner do, while most commission based simply will sell you something.

Once you figure out what you need the day you retire, you have to figure out how much you need to save each year until then. You will either need to cut back on spending now, or plan on spending less in the future.

I've made a nice simple retirement calculator:

Of course, you should double check my math, since I could be wrong. It's also very simplistic and doesn't account for more than one change in investment rate, or inflation rate (healthcare goes up by more than general inflation).

And, with your savings thus far you're better than the majority of American's, so you can take comfort in that.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.