Thread: 1 million dollars

I would focus on the number you want to rake in (monthly/yearly) after you retire. For instance, if you want to make the same amount of money you are right now per year after you retire then you would take you current salary and subtract all the obvious stuff like Social Security, pension, etc. Now, the the number you have left is what you need to base the magic number on. With a safe investment that would be around 3-4% a year on whatever that magic number is.

Let's say you want $70,000 a year after your retirement.

70,000-SS-Pension = 40,000 (As example)

So, to get the other 40k a year you would need

.035 * x = $40,000
x = $40,000/0.035
x = $1,142,858

-peterson82

Originally Posted by peterson82

I would focus on the number you want to rake in (monthly/yearly) after you retire. For instance, if you want to make the same amount of money you are right now per year after you retire then you would take you current salary and subtract all the obvious stuff like Social Security, pension, etc. Now, the the number you have left is what you need to base the magic number on. With a safe investment that would be around 3-4% a year on whatever that magic number is.

Let's say you want $70,000 a year after your retirement.

70,000-SS-Pension = 40,000 (As example)

So, to get the other 40k a year you would need

.035 * x = $40,000
x = $40,000/0.035
x = $1,142,858

-peterson82

The only way to make that simpler is if you didn't have to do the math.....

Very nice post peterson82!