Retirement Needs

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macheta
Posts: 116
Joined: Sat Nov 29, 2014 12:06 am

Retirement Needs

Post by macheta » Sat Jan 14, 2017 10:34 pm

I had a question about this formula about estimating future needs. I did this and it seemed really low.I redid the formula using 2.5% compound to income needs based on inflation and 5.5% to medical. For example, if I retire in 25 years I estimated Medical Expenses would be moved up from 13k to 49k based on 5.5% increase in medical costs per year. What are your thoughts on including inflation and increase medical costs into the estimate?

http://www.investopedia.com/advisor-net ... yptr=yahoo

The Wizard
Posts: 12035
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Retirement Needs

Post by The Wizard » Sat Jan 14, 2017 10:37 pm

Too far ahead to estimate

Wait until five years out...
Attempted new signature...

macheta
Posts: 116
Joined: Sat Nov 29, 2014 12:06 am

Re: Retirement Needs

Post by macheta » Sat Jan 14, 2017 10:41 pm

When I added inflation (2.5%) and increase medical costs (5.5%) it moved my savings required from 690k to 2.5m.

The Wizard
Posts: 12035
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Retirement Needs

Post by The Wizard » Sat Jan 14, 2017 11:02 pm

macheta wrote:When I added inflation (2.5%) and increase medical costs (5.5%) it moved my savings required from 690k to 2.5m.
Just save 20% to 25% of gross income per year.
You'll be fine...
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