I need help figuring something out. I know a person that earns roughly $20,000 a year and has 24 years before retiring at age 67. Probably will earn the same, plus wage inflation, throughout her career. Using the SSA website for very rough figures, she should get 10,600 a year in social security income. Assuming she need about the same amount of income in retirement, how much money would she have to save to replace the $9400 shortfall in social security? I am having trouble trying to figure out how to use FIREcalc for this situation.
She has some money in a 401k ($5000) and will have a paid off house by retirement (current value maybe $125,000, owes about $25,000) , so the source of the savings will likely be 401k money plus a reverse mortgage.
You don't need to tell me things like: She should make more, who knows what SS will be like, etc.
Thanks for any math help. This isn't just a hypothetical exercise.
She has some money in a 401k ($5000) and will have a paid off house by retirement (current value maybe $125,000, owes about $25,000) , so the source of the savings will likely be 401k money plus a reverse mortgage.
You don't need to tell me things like: She should make more, who knows what SS will be like, etc.
Thanks for any math help. This isn't just a hypothetical exercise.