How Much Do You Need To Retire?

(5 posts)(4 voices)
  1. Assuming that DH and I retire at 65 and live in a fairly expensive part of the country, how much would we need? Is there some kind of formula in which you can determine how much you will need? I am wondering if I am on or way off track (I suspect the latter). I don't really feel like meeting with a financial planner, though I probably should. TIA.

  2. depends on way too many things - will you have a pension, will you own your house outright, how high are your property taxes, how much do you want to "do" in your retirement (will you be happy puttering around in the yard or do you want to see the world) how much debt do you currently carry, etc

    One of the biggest reasons we are moving away from the NY Metro area now is that our property taxes are $12K a year and going up every year....by the time we retire they will easily be $20K. So even without a mortgage we would have to come with about $2000 a month just to pay our property taxes and homeowner's insurance. Not gonna happen, so we're getting out now.

  3. it depends on a lot of variables but a good place to start to get a ball park estimate is an online retirement calculator like this one:

    moneycentral.msn.com/retire/planner.aspx
    cgi.money.cnn.com/tools/retirementplanner/retirementplanner.jsp

    If you do decide to see a financial planner please see one that is independent and pay the fee to get their review and input! If you go to someone who is affiliated with an investment firm you will get advice with a big sell and it will probably be incorrect. I know from having done both but double checking everything from the person who working at the investment firm - shocking!

  4. Thank you guys!

    I will use that calculator as a start...thx, robertobiloslav!

    I guess a big "unknown" is how much we will spend on josie's education...

  5. You should also consider the medical costs and access when you retire. Assume that you will pay $1,000 per month on prescription drugs for high blood pressure and high cholesterol. And if you move, what is your family health history? Do you need to live near a large hospital? This is especially important when you're thinking about moving to a small town with no access to emergency care.

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