With the current amount of monthly savings, when will you hit the $1 million savings? Are you saving enough for your kid's college education? Will $100,000 be enough when you retire? Will $2.5 million be enough when you retire? How will your upcoming house mortgage payments affect your retirement savings? All these and related questions, boil down to one simple question. How do you find if you are saving(and investing - remember that saving is not the same as investing) enough right now? There are multiple ways and even more tools and best practices to calculate and find if you are roughly on track towards a good saving and investing regime. It is futile to aim for accurate numbers or to assess if you will have saved $2.4 million by the age 63. What is more important, is to assess if you are roughly on track. With the innumerable variables in life, it is next to impossible to predict accurate numbers and financial milestones. Yet, educated best practices and tools, historical l
Can you run out of money? Yes, you definitely will run out of money, unless you take a conscious steps towards laying down some strong foundational steps. It really does not matter much whether you are making $60,000 per year or $200,000. If you do not save and invest, the future of a general family is bleak. I might be sounding too aggressive and pessimistic, but I feel it is better to be a bit worried today, instead of in future when you really need the money. I understand that I cannot make a sweeping generic statement because everybody is unique, with unique situations, but here are a few facts to ponder upon. I have read many times people commenting that they aim to save at least about $100,000 for retirement. Do you think $100,000 sounds like a big amount? For a moment, let us not consider any alternate income sources such as social secruity income Assuming annual before-tax return of 5% on the amount Assume that you may need to withdraw about $7000 every month at re