How to All But Clinch a Millionaire Retirement
If you think that a million dollars is a heck of a lot of money to retire with, think again. It is a significant sum, but it doesn't necessarily mean you'll be living a life of luxury in your last decades. Applying the flawed but handy 4% rule that suggests withdrawing 4% of your nest egg in your first year of retirement and then adjusting future withdrawals for inflation, a million-dollar nest egg will start you off with $40,000.
Adding the average Social Security benefit of about $20,000 annually, or an above-average benefit of $30,000, will give you $60,000 or $70,000 in initial annual retirement income. That may or may not seem like enough for you, but there's a good chance that it's in the neighborhood of what you need. So aiming for a million dollars by retirement is a good goal. (Many people may want to aim even higher, of course, perhaps even shooting for $2 million or more.) Here are some strategies to build a big nest egg.
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Source Fool.com
