How Much Do I Need to Retire?
The honest math behind retirement planning. Enter your actual numbers below and find out exactly how much you need, how long it will take, and what you might be forgetting. No BS, just compound interest and the 25x rule.
Quick Start: Pick Your Lifestyle
Your Numbers
Your age today
When you want to stop working
Gross annual salary/income
All retirement accounts + taxable investments
How much you save/invest each month
In today's dollars
Advanced Settings
4% is standard; 3.5% for early retirement
7% is long-term stock market average
3% is the historical average
Your Retirement Number
$1.50M
$60,000/year ÷ 4% withdrawal rate · $5,000/month in retirement
Years to Goal
35
You'll hit your number at age 70
Projected at Retirement
$1.21M
At age 65 (30 years)
Shortfall
$290.5K
Need $427/mo more
Current Savings Rate
21.2%
Excellent — FIRE territory
Time to Get Serious
The math is telling you something important: either increase your savings rate, lower your target expenses, or plan to work longer. No shame in any of those. The worst thing you can do is ignore the numbers and hope for the best. Hope is not a financial strategy.
The 25x Rule: Your Retirement Number in 10 Seconds
The simplest retirement formula in existence: multiply your annual expenses by 25. That is your retirement number. If you spend $50,000 a year, you need $1.25 million. Spend $100,000? You need $2.5 million.
Why 25x? Because it is the inverse of the 4% safe withdrawal rate. If you withdraw 4% of $1.25 million, you get $50,000 per year. The Trinity Study showed that a 4% initial withdrawal rate, adjusted for inflation annually, survived 95%+ of all 30-year historical periods since 1926.
The catch: 25x assumes a 30-year retirement. If you are retiring at 55 and plan to live to 90, that is 35 years. You might want 28-33x for safety (a 3-3.5% withdrawal rate). The earlier you retire, the more conservative you should be.
What most people miss: the 25x rule is based on your expenses, not your income. This is why cutting expenses is a double win — it both reduces your retirement number AND frees up more money to invest. A person earning $80,000 who spends $40,000 needs less than a person earning $200,000 who spends $150,000.
6 Costs Most People Forget in Retirement Planning
Healthcare Before Medicare
$15K-$25K/yearIf you retire before 65, you're on the ACA marketplace. A couple in their late 50s can pay $1,500-$2,000/month for decent coverage.
Long-Term Care
$60K-$120K/yearAbout 70% of 65-year-olds will need some form of long-term care. Nursing homes average $8,000-$10,000/month.
Home Maintenance
1-2% of home value/yearThat $400K house needs $4,000-$8,000/year in maintenance. Roofs, HVAC, plumbing — they all have expiration dates.
Taxes in Retirement
VariesTraditional 401(k)/IRA withdrawals are taxed as ordinary income. Social Security may be partially taxable. Only Roth accounts provide tax-free income.
Inflation
~3%/year historicallyAt 3% inflation, your purchasing power halves every 24 years. A 30-year retirement means your last dollar buys 40% of what your first dollar bought.
Sequence-of-Returns Risk
Can destroy portfoliosA big market drop in your first 3-5 years of retirement is far more damaging than one 20 years in. This is why the first few years matter most.
Glen's Take: What I Actually Do
I ran a hedge fund. I have written over 2,700 blog posts about investing. I have analyzed more financial data than most people will see in a lifetime. And here is my retirement plan:
Low-cost index funds. Max out tax-advantaged accounts. Keep expenses low. Do not try to be clever.
Seriously. After a decade of analyzing individual stocks, writing hundreds of investment theses, and watching people (including myself) make every mistake in the book, the answer for most people is boring: buy VTI or VTSAX, keep buying, never sell, and let compound interest do the work.
The people who build real wealth are not the ones picking hot stocks. They are the ones who automate their savings, live below their means, and have the discipline to not touch their investments when the market drops 30%. That is the whole secret.
My options record is 1 win, 8 losses. I have made more money from consistent index fund contributions than from any clever trade. Learn from my mistakes — check out my worst trades page if you want proof that humility beats ego in investing.
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Frequently Asked Questions
Recommended Resources
Tools & books I actually use and recommend
Interactive Brokers
Low commissions, global market access, and professional-grade tools. This is where I hold my positions.
Open an AccountA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonThe Intelligent Investor
Ben Graham's timeless guide to value investing. The book Warren Buffett calls "the best investing book ever written."
View on AmazonSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.
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