How do I figure out how much pre-tax income I will need in retirement? For example, say I estimated $Y in annual living expenses (post-tax) while retired. And say I am using a 15% tax bracket.
Initially, I was using this equation- $Y x 1.15. But when I subtract 15 percent of that I don't get back to the sum I need to cover my annual living expenses.
Can you please provide me with the basic equation to get my pre-tax income requirement when I know my annual living expenses and income tax rate.
Thank you for your advice.
Initially, I was using this equation- $Y x 1.15. But when I subtract 15 percent of that I don't get back to the sum I need to cover my annual living expenses.
Can you please provide me with the basic equation to get my pre-tax income requirement when I know my annual living expenses and income tax rate.
Thank you for your advice.
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