Many Americans are not making the calculations of their retirement.
More than 75% of people planning to retire have not calculated how much money they will need before making the leap, according to study by the Four Pillars of the 2020 New Retirement of investment company Edward Jones.
Fortunately, CNBC restricted the numbers and we can tell you how much you have to save to get $ 50,000 in passive income each year in retirement.
First, some basic rules. The numbers suggest that you will retire at age 50, that you will now have no savings, and that you plan to leave a substantial amount of your income to reach your goal.
To invest, we assume an annual return of 4% when you save. We do not account for inflation, taxes, or any additional income you may earn from Social Security and your 401 (k).
In retirement, we use the “4% rule,” which is a general principle that says you can comfortably withdraw 4% of your portfolio each year.
It is important to keep in mind that with the recent volatility of the market, there is a risk that in the future you will have to reduce the percentage of spending.
Watch this video for a complete breakdown of numbers.
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Disclosure: NBCUniversal and Comcast Ventures are investors Glans.