In this video, I break down how to figure out how much you need saved for retirement. Is it possible to become a millionaire? Yes, absolutely! But is $1 million enough for you personally? Today we find out.

MILLIONAIRE SERIES VIDEOS:
1. The first steps you can take towards becoming a millionaire:    • The Expenses That Will PROHIBIT You F...  
2. How much you need to invest per month to hit $1M by 65 based on your age:    • EXACTLY How Much to Invest Per Month ...  

RETIREMENT CALCULATOR
I’m working on a retirement calculator in Excel but I wasn’t able to get one together in time for this video. So check out this retirement calculator instead!
https://www.ramseysolutions.com/retir...

DISCLAIMER: I am not a financial expert so this does not constitute legal or financial advice. It’s purely a guide for determining how much you need saved for retirement. Talk to a financial advisor for a more accurate understanding!

First step towards finding your retirement number:
I would recommend looking at your current lifestyle and deciding if that’s the level of living you’d like, or if you’ll need more or less in retirement. Then there are 3 questions to ask yourself.

1. At what age do you want to retire?
Many people retire at 67 when they can start getting social security but that doesn’t mean you have to as well. Do you want to have financial independence and retire early (FIRE)?

2. What current expenses do you have that you won’t in retirement?
One obvious one is your house payment! Hopefully at least. Also life insurance might be one you don’t need any longer if you have enough to be self insured.

The biggest is debt. If you pay off your debt, including your house, that will drastically reduce the amount you need in retirement as the amount you need to save per month to do it.

3. What kind of retirement are you anticipating?
Some people just want to live quietly at home, garden, and hang out with their grandkids! Others want to travel. We personally want to travel. The key is figuring out about how much those activities will cost per month, then plan on that being a portion of your expenses.

After answering these questions, consider these things before calculating your retirement number!

Inflation will take away from your retirement so you’ve got to save more than you might think. Average rate of return in the S&P 500 is about 10% but many people use 6% as a conservative estimate and to account for inflation. And a 5% withdrawal rate is a good basis to plan for so you don’t run out of money!

Having said this, if you want to retire on $100k per year with a 5% withdrawal rate, this is how we figure it out.

$100,000/0.05 = $2,000,000 which means saving about $1005 per month for 40 years using a 6% rate of return.
With inflation it's about $2M!

⚡️INVESTMENT CALCULATORS⚡️
If you’d like to get more in depth on your numbers, check out this calculator from Nerd Wallet!
https://www.nerdwallet.com/investing/...

And here is the calculator I used to calculate the monthly savings:
https://www.ramseysolutions.com/retir... Notes and Resources 📒

Timestamps:
0:00 - Intro
1:23 - The Two Variables of Retirement
1:53 - Necessary Expenses in Retirement
3:28 - Unnecessary Expenses in Retirement
4:36 - How to Make $100k per Year in Retirement
6:30 - How to Modify Your Number to Your Situation

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⚡️DISCLAIMER⚡️
Do your own research. My content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional financial advisor when considering your retirement options. Though I teach financial principals, I am not an investment advisor and none of my advice constitutes legal, tax, or investment as a professional. Everything I share is based on my own research and is intended for your benefit. Any financial technology reviews are intended for your benefit. Research each product yourself to determine if they are right for you.