Your Retirement Number
01.Estimating Your Needs
A common rule of thumb is the 4% Rule: you can safely withdraw 4% of your retirement portfolio in your first year of retirement and adjust for inflation annually without running out of money. This means you need a portfolio equal to 25 times your annual retirement expenses.
02.Budgeting for Retirement
Estimate your future expenses. Will your home be paid off? Will your children be independent? Keep your estimate realistic and build your savings targets accordingly.
03.Getting Started Today
Don't get overwhelmed by the large targets. The most important step is to start saving immediately. Automate 10% or 15% of your income to retirement accounts and let compounding work its magic.