How Much Money Do You Really Need in Retirement? with Mr. Everyday Dollar

How much money do you really need in retirement

I recently sat down for an interview with Mr. Everyday Dollar to discuss saving for retirement, the 4% rule, early retirement, safe withdrawal rates, and more. You can read the interview by clicking the link below.

The following is an excerpt from Mr. Everyday Dollar

On the accumulation side of retirement, what are the steps someone should take to figure out how much they should be saving and investing?

I like to think about it in terms of the safe savings rate methodology I developed as a counterpart to retirement safe withdrawal rates. This involves figuring out what your retirement spending goals are, and then figuring out how much you should be saving to have sufficiently high probability for meeting those goals.

You need to think about planned retirement age, desired spending in retirement from the investment portfolio, reasonable portfolio return assumptions, and future salary until retirement. Then you can figure out how much you need to save.

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