Retirement is probably the most expensive thing you’ll ever pay for. Because of that, it may be difficult to put the amount you may need to save into perspective.
How Much Would You Be Able to Withdraw Each Year?
For simplicity, let’s assume: You’re ready to retire today and plan to have your
retirement savings last 25 years. You’ve moved your savings into more conservative
investments that you believe are appropriate for retirement. The investments will
provide a constant 6% annual return.
You’ll withdraw the same amount at the end of each year. retirement savings last 25 years. You’ve moved your savings into more conservative
investments that you believe are appropriate for retirement. The investments will
provide a constant 6% annual return.
$100,000
|
$7,823
|
$200,000
|
$14,645
|
$300,000
|
$23,468
|
$400,000
|
$31,291
|
|
$600,000
|
$46,936
|
$700,000
|
$54,759
|
$800,000
|
$62,581
|
$900,000
|
$70,404
|
$1,000,000
|
$78,227
|
Keep
in mind that these examples don’t include factors such as inflation
and
volatility that can have a big impact on your purchasing power and account
value. For example,
if inflation were 4% a year, a
withdrawal of $31,291 25 years from now would volatility that can have a big impact on your purchasing power and account
value. For example,
only be worth $11,738 in today’s dollars. Investment losses would decrease
your account’s growth potential in subsequent years. To account for these
factors, you might need to save even more.
Thank you