Is it possible to back into what one needs in his nest egg?
Here’s the calculation. In general I listed only my monthly household expenses (I have no mortgage). The gross up factor of .33 is based upon the premise that one’s household expenses should represent one-third of one’s income. I believe the rate of return of .03 is on the conservative side.
Your comments please.
Thanks.
PopVR
Total monthly household expenses..... $ 710
Gross up factor......................................33
Total monthly expenses.....................$2152
Annual expenses............................$25,824
ROR.....................................................03
Nest egg needed...........................$860,800
Here’s the calculation. In general I listed only my monthly household expenses (I have no mortgage). The gross up factor of .33 is based upon the premise that one’s household expenses should represent one-third of one’s income. I believe the rate of return of .03 is on the conservative side.
Your comments please.
Thanks.
PopVR
Total monthly household expenses..... $ 710
Gross up factor......................................33
Total monthly expenses.....................$2152
Annual expenses............................$25,824
ROR.....................................................03
Nest egg needed...........................$860,800