How Much Money You NEED to Retire, Ep #43 

<p><em>When should I retire? How much money do I need? Can I afford to retire?</em></p> <p>Are these questions rolling through your mind? In this episode of Retirement Made Easy, I share some statistics about retirement savings and what various experts think you need. I share some resources to help you determine where you should be, and what I think you should base your retirement goals on. Check it out!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:25] The Retire Inspired Quotient</li> <li>[5:50] Fidelity’s rule of thumb for retirement</li> <li>[8:10] The average 401k balance</li> <li>[11:38] An example where the rule of thumb doesn’t fit</li> <li>[13:33] What you need depends on retirement goals</li> </ul> <h2>The Retire Inspired Quotient</h2> <p>Dave Ramsey has a YouTube <a href= "https://www.youtube.com/watch?v=uggSmPDo-Zw" target="_blank" rel= "noopener">video</a> entitled, “How Do I Know When I Have Enough Money to Retire?” In this video, Dave does a good job explaining that retirement isn’t one-size-fits-all. What you want in retirement is unique to you.</p> <p>What lifestyle do you want in retirement? Do you have goals to travel and see the world? You might need a larger nest egg. Rules of thumb aren’t for everyone but are a great place to start. Dave Ramsey’s “<a href="https://www.ramseysolutions.com/retirement/riq" target="_blank" rel="noopener">Retire Inspired Quotient</a>” helps you determine the number you’ll need to have saved to retire comfortably. The RIQ tool is free and helps you get off to a great start.</p> <h2>Fidelity’s rule of thumb</h2> <p><a href= "https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire" target="_blank" rel="noopener">Fidelity’s</a> rule of thumb is that by age 67, you need to have saved 10x your annual income. If you make $50,000 a year, you need to have $500,000 saved to retire. You need to have 8x your income saved by age 60. This sounds a lot easier than the $1 million people think they must use as the benc