Reverse Mortgage Guide

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.

This entry was posted on Thursday, August 23rd, 2007 at 6:30 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.