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For some, this means starting a family.
Of course, for many, its a combination of these things and more.
If someone gives you a specific number, without running detailed analysis RUN!
So, how do you do this?
Lets be clear, most people dont want to stop working and just watch paint dry.
Everyones answer will be different!
In my work with clients, I hear goals ranging from ages 45 to 75.
Understanding when you want to retire is crucial, though this number can change over time.
Factors to consider are, do you want to retire in thesame city or state?
Are you staying in your 5-bedroom home or do you plan to downsize?
Are you staying in the United States?
Last but not least, come up with a lifestyle vision.
As you start fleshing out your vision, youll see how much money you gotta achieve it.
Just remember to account for inflation, taxes, healthcare and so on.
For women, we must also account for longevity and higher costs of care.
Plus, you may want to travel more.
That $5,000 per month could quickly become $6,500 or more.
Understanding your vision for what we like to call a 40-year vacation your retirement is essential.
If you earn more or less than that, adjust your savings accordingly but still follow the percentage guidelines.
As your income increases, continue to save more money.
Review your retirement plan annually to adjust for changes in income and life goals.
And dont underestimate the power of compound interest.
The sooner you start saving, the more your money will grow.
If you havent gotten there yet, you may want to save more aggressively to catch up.
And if you want to retire earlier than 67, you may need more than that set aside.
By the age of 40, you should have three times your annual income.
By 50, you should have double that.
But remember, these are just general guidelines.
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