Originally Posted by blanston
...my question is, it seems the big one,* when does one have the financial to retire?
... And, so,* i have looked at average and actual income needs to determine for myself how much income i need--? its still a mystery so i will continue to read and learn.
Welcome to the board. Glad you found your way here and have read enough to know you need to know more than you do.
The mystery of knowing HOW MUCH? is enough is a personal thing. No one can tell you exactly what you will need because no one knows all the details required to estimate your nest egg that you will require to fund your expenses for as long as you live in retirement. You can get a general idea by doing what Jsdw_fire and Nords said...run FIRECalc and track your expenses for several months to see how much you are speding on what. After that, you need to determine your future expecations about what you want to do with the rest of your life and how much it will cost you to do it. Thow all that in the pile. Guess on how long you might live...look at family member and see how long they lived and add some years on to that to be safe.
Once you have an idea (nothing will ever be exact so don't over do the math) of your expenses and your income needs you can then figure what it will take to create an income stream to support your spending for the rest of your life. The size of your nest egg will determine how long you have to work, save and invest. The rest is just adjusting your income flow from the nest egg to assure it will last until you die.
Search around the board....most likely there are already a hundred idea on any topic you can imagine.
Know your expenses--now and those expected in retirement.
Determine what you income sources will be in retirement and when they will be available to you. Fill any gaps with nest egg income flows.
Calculate how much nest egg you will need based on your needs and your life expectancy.
Calculate your shortage and see if you can balance the equation by... reducing expenses....or adding to the nest egg....or getting a higher return on the nest egg you have.
Determine how to crack your nest egg without spilling out all the yoke at once...it has to last you a lifetime.
Once you have YOUR nest egg number....stop working when you get there.
Don't forget to enjoy life while you are working.
Retirment is just another phase of life...enjoy the journey on your way to the destination.