We all see retirement through our own eyes. Much different at age 40, 50, 60, 70, or in the case of a few of us here on ER, ... nearer to age 80. If you are 45 and plan to live to age 85, and spend $60,000/yr... you need more than I do, if you plan to spend down your net worth.
If you intend to keep your net worth intact, you need MUCH more.
Here's a very simple question you might ask yourself... starting with net worth, if you intend to spend down.
1. Assume your investments (NW) track inflation.
2. Estimate your remaining years
3. Divide your net worth by the remaining years.
4. Can you live on that?
So you'll do better than inflation? How much better? 3%?... Add that to the result in #4.
...................................................................
Depending on your age, wealth accumulation, risk, and national economic stability, has changed over the years. Financial planning is relatively new. When I began work, financial stability rested on long term employment, steadily rising wages, and things like profit sharing (sears Roebuck)... where a 30 year employee might end up with retirement of $300K... in today's dollars, about $2.5 Million. (1958). The interim period through the early 90's saw interest rates from 6% to 13%... in bank savings accounts and CD's. For a frugal, LBYM person, capital accumulation was a little less uncertain.
That was a plea for understanding people who have a "different" perspective on investments.
....................................................................