@ClementsMoney Hump Day Help – Calculate Your Required Nest Egg
Welcome to the Hump Day Help. Each Wednesday we take one of the weekly actions from Jonathan Clements‘ blog Humble Dollar and “militarize” it for you. Jonathan Clements was a longtime personal finance columnist for The Wall Street Journal, and he offers great advice at the best price you can get…free. Here is this week’s Hump Day Help:
CALCULATE YOUR REQUIRED NEST EGG. Once retired, you’ll likely have Social Security and perhaps a traditional employer pension. How much additional income will you need for a comfortable retirement? This money will need to come from savings. Take your desired portfolio income, multiply by 25—and you’ll have an estimate for how big a nest egg you need.
If you stay in for 20 years or more, you’ll have a pension. That pension is very valuable and will greatly reduce the size of your required nest egg. That’s one of the major points of this site – just stay in to get rich.