You should look at how much income you need to cover your expenses in retirement and work backward.
The best place to start is with your current monthly budget. Take out what you won’t be paying for in retirement (like college costs, mortgage, and retirement contributions), add in extra expenses you think you might have (like travel or hobbies), add a cushion to be safe, and multiple by 12 for your yearly costs. Now, divide your annual cost by 4% (this allows for inflation and a conservative estimate of investment returns) to find out how much you need to save.
For example, if $40,000 covers your yearly expenses, you’ll need $40,000/0.04 or $1,000,000 saved. Keep in mind this is only an estimate. Like every other retirement calculator, it can’t predict the future, but it does give you a goal to strive for. You still need to build a retirement plan to reach the goal.
If you need a simple advice or talk to me about your goals call me at 813-964 7100 or visit my website www.MintcoFinancial.com