How Much Do You Need to Retire?
August 23rd, 2007
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How much do you need to retire?
The Deseret Morning News has a great column by Rodger L. Hardy with some interesting numbers. Quoting Scott C. Marsh, Hardy reports this is how much you need in terms of assets to produce a given income:
* 50-year-olds would need $2.3 million in assets, making $90,000 annually;
*40-year-olds would need $4 million in assets, making $133,000 annually;
* 50-year-olds would need $2.3 million in assets, making $90,000 annually;
* 40-year-olds would need $4 million in assets, making $133,000 annually;
The logic here is that the younger you are when you start saving the more time you have to build a nest egg. At the same time future cash needs will be greater than today because inflation devalues money — you’ll need more dollars in the future to buy a loaf of bread even though a loaf of bread will be the same.
Marsh told Hardy that “saving 10 percent a year with average incomes starting now would give 20-year-olds $14.5 million by retirement age, 30-year-olds $4.5 million and 40-year-olds $1.5 million.”
Interesting stuff.
For more, see the complete article: $40,000 enough, money expert says, August 21, 2007
The story also has two web resources for Marsh: www.powerpay.org and “One for the Money” on www.lds.org.
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