The million dollar question. Or is it two million? Either way, it’s hard to save for anything without knowing how much you need. When it comes to how much you need to retire, there’s no perfect answer.
In its entirety, it’s a series of educated guesses, along with dirty math, to come up with a fuzzy number you’ll need to live off throughout retirement.
I don’t say this to discourage you. Understand, we’re predicting the future based on past averages. You’re projections need to account for: inflation, expected returns (and an asset allocation to get you there), your ability to save, and your behavior along the way.
It’s simply not a perfect science. Retirement calculators work in a vacuum, reliant on fixed numbers. The economy and the stock market don’t move in a straight line or act rationally at all times. Continue Reading…