Hi all, I have really enjoyed reading all the fantastic information and perspectives from this group. I am currently 51 and I think getting close. There are so many math rules that people and publications use to determine if they are ready or not, but doesn't it come down to these basic questions:
1) how much do you need per year to live the lifestyle you want
2) how much (if any) do you want to pass on to your children or others
3) how long will you live, or better said, what is the longest you think you will live.
If you can answer these questions with reasonable accuracy, then it seems to me that there are very conservative approaches to "how much is enough".
My take is this:
If I have enough in todays dollars to take #1 above times #3 plus #2, then that conservatively should be enough, right? As an example, if I need $100k per year and I could live 40 years and I want to leave $1 million to my children then I need $5 million today. I am assuming that I can always average more return on my "nest egg" than inflation over time, so this should be a very conservative approach.
Am I missing something? My numbers are slightly different but I am basically about 2-4 years away from that math working for me.
Thanks in advance and again, I really enjoy this forum and am dreaming of the freedom retirement will someday bring me.
1) how much do you need per year to live the lifestyle you want
2) how much (if any) do you want to pass on to your children or others
3) how long will you live, or better said, what is the longest you think you will live.
If you can answer these questions with reasonable accuracy, then it seems to me that there are very conservative approaches to "how much is enough".
My take is this:
If I have enough in todays dollars to take #1 above times #3 plus #2, then that conservatively should be enough, right? As an example, if I need $100k per year and I could live 40 years and I want to leave $1 million to my children then I need $5 million today. I am assuming that I can always average more return on my "nest egg" than inflation over time, so this should be a very conservative approach.
Am I missing something? My numbers are slightly different but I am basically about 2-4 years away from that math working for me.
Thanks in advance and again, I really enjoy this forum and am dreaming of the freedom retirement will someday bring me.