No. of Recommendations: 1
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?

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.