What will it take for you to retire comfortably? For years, people would contact me to help them figure out their “NUMBER,” as if there were one, magic number that anybody could use. A recent oft-q…
For years, people would contact me to help them figure out their “NUMBER,” as if there were one, magic number that anybody could use.
It is unclear how respondents determined their numbers. My guess is that they had $1 million in their heads and then tried to factor in inflation and longer life expectancy to come up with some number that vaguely resembled their specific number. Regardless of how much money you earn or have saved, all financial planning starts at the same place: determining your monthly income needs in the future.
The monthly need will be reduced by any income you anticipate receiving in retirement, including pensions, passive income from rental property or a trust, the income generated from your nest egg , and of course, the all-important Social Security benefit that you will claim. That could mean higher FICA taxes or perhaps a larger share of earned income being taxed, in order to restore benefits to 100 percent of what has been promised, instead of the current numbers, which show that after 2033, the government will only be able to pay 77% of scheduled benefits.For many of you, the output may be unnerving. You might find that living to 100 means that you are going to have to save more money today.
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