Retirement?

About how much money do you need in your retirement account to bring in $3,000.00 a month when you retire?

Public Comments

1. You can generally plan on being able to withdraw about 4.5% of your total nest annually in perpetuity. If you need $3,000 per month, or $36,000 per year, then you'd have to have about $800,000 saved up. This allows for the fact that you'd have to increase your annual withdrawal to account for inflation. Personally, I'd need about twice that, but different people have different needs.
2. Well there are different models you can use to figure this out. The one I prefer, which is not depentent on age, is just to base it off of a return on interest. If you assume you can get 8% interest on your money, if you have $450,000 invested, you would get $36,000 a year or $3000 a month forever. Then when you died you can use that money to pay off all your estate issues and give the kids/grandkids something nice.
3. Download the free retirement calculator at the URL below and put in your investments, age, ROI and see if you like what it tells you.
4. Depends on when you retire - how well the market has done, etc. About a million should cover it.