How to Calculate a Retirement Goal
Most people appear to like simplicity. So when the question becomes “How Much Money Do I Need to Retire,” predictably, one might receive a response like how about $1 million dollars. Indeed, the one million dollar number is often floated as the amount of money a retiring household needs to retire comfortably. But while that answer comes in the form of a simple-sounding round number, raising a million dollars isn’t so easy. Indeed, few people achieve that goal. So perhaps we should abandon a certain level of simplicity in favor of precision.
Anirban tells us what goes into calculating what your number should be.