No. of Recommendations: 1
You have been able to accumulate $125K in savings with fairly modest income. I think that suggests you are in pretty good shape.

When you are on your own, what will your extra expenses be? Will you rent an apartment? Buy a house? Why not look in the newspaper and find out what apartment rents are like in your area.

I would think $30K would be typical of what most people retire on once they own their homes. But it does depend on your lifestyle. If $16K does it for you now, that plus housing costs and allowance for inflation should tell you what you will need to maintain your lifestyle.

The usual rule at Motely Fool is that you can spend about 4% of your invested assets per year to make them last 30 years. So if rent and utilities come out to be $800/mo or abt $10K per year, then you can count on cost of living increases in SSDI to cover your other costs. So you need $250K to pay that $10K from investment income long term.

At a 5% rate of return, your money should double every 14.4 years. So if you allow the money you have to grow for 15 years, you have a decent shot at making your goals. Of course we all worry about keeping up with inflation. So these numbers are only approximate. But as they say, keep doing what you are doing. Work on making sure your money earns at least 5%.

If you don't do spreadsheets, its tough to do much more than that. But the Rule Your Retirement premium board has a retirement planning work sheet that helps you work this all out. Or a financial planner could put the numbers together for you. But if your parents are still in good health, perhaps there is no hurry.

And no, once you press submit, there is no way to correct an error in Fooldom.
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