No, this is not a cheesy, pick-up lines post. Although, I can work personal finances into almost any subject, this post concerns your retirement number. Have you given it a second thought? One day, Lord willing, our best working days may be behind us.
I challenged our Facebook family to explore a rough estimate of their nest egg number needed to support a comfortable retirement lifestyle. Inflation aside for this working example, the results are definitely eye opening.
WonderMan and I are in intense fellowship over what constitutes a comfortable, annually retirement income. In the meantime, I picked $75,000. Ideally, you want to amass a nest egg that will produce enough interest income to live on. Assuming that he works until 70, we remain relatively healthy, and have retired all mortgages (not to mention committed to 30 years of debt free living); I’ll venture that $75,000 in today’s dollars would be reasonable. Here’s a snap shot:
|Target Nest Egg||$1.2M|
|Nest Egg %||6%|
These are very rough numbers with general assumptions on future interest rates. This also takes into account our current retirement savings. However, this snap shot further confirms the Debt Free Divas’ theory that debt free living contributes to financial success in this country. With disposable income directed toward servicing debt, that $1000 monthly savings figure would be harder to reach. If Social Security is still around in 30 years, that’s even better.
Can you take the medicine? I can provide a glimpse into your financial future. Just complete the required details on Facebook and I’ll let you know what savings target you need to hit.