How much will it cost you to retire?
The amount might suprise you.
When I was doing some financial product sales ages ago, I’d ask people if they wanted to plan on Social Security income when planning their retirement.
Many said they’d doubt they’d ever see much from Social Security… or that after inflation had eaten it awy it’s worth would be minimal.
But when I’d factor OUT Social Security Income (and sometimes when I left it in) the monthly savings target was SO HIGH, people thought I was lying to them.
Even when I had them do the calculations themselves, the shock froze them into inactivity.
Think of it this way.
If you live on $40,000 per year now, before taxes, if you can safely earn 5% on your retirement nest egg, how much will you have to save to “retire” and not depend on anyone else?
$800,000.
To be more scientific (but maybe not any safer), you can use this retirement calculator.
To be safe, you really need to have more like $1,000,000 to keep ahead of inflation.
Now do you see why folks become paralyzed.
To save a million dollars in 20 years, you’d have to save $50,000 per year less any interest or investment gains… to produce $40,000 per year without touching the principal!
The only way most people can get ahead is to have their own business.
A small home business has the potential to generate tax deductions and extra income streams.
Do you think it’s easier to save nearly $50,000 per year to fund your retirement later?
Or easier to build a business that will generate your $40,000 per year?
Most people will see the wisdom of doing the latter.
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