How much do I need to retire?

Figuring out the amount you need to have stashed away in order to retire.

“How much do I need in order to retire?”

One of the best examples of why there isn’t a one-size-fits-all solution to this question. The answer is: It depends.

Oftentimes you’ll read answers that claim to know how much you need. $1 million is a commonly cited number, but that won’t be enough for a lot of people to comfortably live on for a couple decades (and I’ll explain why soon). Instead, it depends on your answers to a few questions:

• What is your desired, but realistic, lifestyle expectation?

• Where do you want to live and what’s the cost of living?

• At what age do you want to retire and how many years do you guess you will live beyond retirement? (A little dark, I know, but your mortality plays a role in the “how much is enough” equation.)

There are so many other questions that can factor in, but these three help to form a framework upon which to build a baseline when you’re fairly young and likely a few decades away from retirement.

Retirement “Rules of Thumb” to Utilize

Everyone loves a rule of thumb and often wants to be able to apply one to their own financial situation. So, fine, I’ll cave and give you two rules of thumb.