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We've been giving this a lot of thought recently, and I'm still not sure how much Tt and I will need to retire. We've been saving for a while now, and have even been able to save a hefty chunck of change while we've been living off grad student stipends. Depending on the area where we decide to retire, our monthly expenses will be extremely different. It depends on things like inflation, property tax and food prices. Also have to take into account longer lifespans and medical costs. Oh, and if we have any children/grandchildren that'll be a factor as well.
If we live someplace in the midwest with the same expenses we face today and no inflation, we could easily live on $14,000/year. If we wanted a 20-year retirement, that would only be $280,000. If we wanted a 40-year retirement, we would need $560,000. That's far less than a million dollars, but it will still take us some time to save that much.
We deal with the uncertainty by putting away what we can when we can and not adding any unecessary expenses. We're doing pretty well so far.
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"Sometimes I have to remember that things are brought to me for a reason, either for my own lessons or for the benefit of others." Cynthetiq
"violence is no more or less real than non-violence." roachboy
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