Quote:
Originally Posted by Jim Richards
The only way that financial planner's number isn't nonsensical is if you have to make a big mortgage payment or rent every month while in retirement.
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I saw a planner too. He also advised that I need about 10 million in investments to retire... I was dumfounded.
I am a doc, but even I found that number absurd. But, he may be right...
2-3 million in todays dollars at 4% puts out $80-120,000 per year. Thats a reasonable amount to live on, as the tax man takes some of it. Also, you may very well be disqualified from getting social security by means testing...
If you are 65 NOW, and have 2-3 million, you are good.
If you are 45, the story is different. 20 years from now, assuming some inflation, that 2-3 million will need to be 5-10 million... Again, assuming inflation.
Staggering numbers.
According to the IRS the average person has <$20,000 set away for retirement.
Most docs, who are fairly high earners, don't have near 2-3million in investments at the age of 65. 2-3 million in assets... possibly. In investments... No.
But, you can always sell your house and downsize, and live off that...