It all revolves around the value of your house.
Over there years, there have been a many of pieces/articles/calculators that will help you get to your “retirement number.” The calculation outlined by Jared Dillian is the first time I’ve seen one that is simple and makes sense: it’s all about the value of your house. The income you will need annually is 30% of your home value. The savings you will need is that projected annual income, divided by 0.04.
So, living in a $1 million-dollar home in retirement will require annual income of $300,000, and savings of $7.5 million.
The big to-do coming out of this article is that calculations like these are still “rule-of-thumb” numbers. Ultimately, a thoughtful and personalized financial plan will help nail down specific numbers for you and your retirement.
So I encourage you to engage with your financial advisor so you can get to your specific numbers!
Here is the full article: https://www.mauldineconomics.com/…/how-much-do-you-need-to-…
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