The biggest determinate in retirement financial planning is the cost of your expected lifestyle. The more expensive your lifestyle, the more assets you need. The biggest obstacle to accurate spending is health care insurance cost and actual healthcare spending. . Like wise, the other determinate is are you living on dividends and interest only, or are you withdrawing principal for the difference.
So ball park figures:
Starting at full retirement age, with a 3% inflation rate per year of the expenses, assets which gives off 3% in tax free dividends, and 5% growth per year,
From a taxable account, not an IRA, and does not draw down on the principal, for every 25,000 of life style costs over and above Social Security income, you will need about $850,000 in assets.
OR
From a taxable account, not an IRA, and does draw down on the principal, for every 25,000 of life style costs over and above Social Security income, you will need about 300,000 in assets, which will disappear at age 86
So pick your incremental costs over social security, and save for your retirement. The same amount in a Roth will do. As far as an IRA account goes, then it's a more complicated model with taxes, penalties, and increasing distributions.
just a generalized starting point, not knowing your social security income levels. .
good luck
|