Here's Your Free Report: The 3 FREE Tools I used to Plan my Fabulous Retirement
Most adults never bother to find out how much their "Golden Years" will actually cost...
That's just asking to live in poverty (can we say Bag Lady?), lean on relatives, charities or government assistance or try to keep working into old age!
But, by using these free tools, you can join the wealthy minority who know their post-working lives will be relaxing and secure.
1. Discover how much income you'll need for retirement:
Take the Income Replacement Ratio (IRR) Quiz:
Multiply your current income by your IRR to find your retirement income needs. For example:
If your current income = $100,000 and your Income Replacement Ratio (IRR) Goal = 80% Then your retirement income target = $80,000 per year.
2. Find your expected income from Social Security (in the USA), other government retirement programs, private pensions and annuities you have purchased or will receive.
Or, for a quick estimate, use the Social Security income calculator from Bankrate (click here).
*** If you live outside the US and/or have other pension and benefits due you, you'll need to contact those providers and verify your expected retirement income from these sources.
NOW: Take your target income from Step #1 above, $80,000 in our example.
Total up your projected income from programs and pensions in #2. Let's estimate you expect to collect $40,000 per year.
And, what's left is the income you need to generate from your savings and investment accounts: $40,000
3. Finally, calculate the total of investment account values needed to fund your retirement.
The easiest way is to use the Vanguard NestEgg calculator (click here).
Using the 4% rule-of-thumb: If you want to safely withdraw an investment income of $40,000 annually for a 30+ year period;
A $1 million portfolio will support you into old age!