ADP tells me that I should save $4m to retire in 20 years!! Is this reasonable?!! Looks too high for me!!
It depends, how old will you be in 20 years? 80 year old retiring with $4M is reasonable even in 2045.
Depends on where you plan to live after? If its CA/NY/SEA and if mortgage is not paid and if you are not drawing full income from social security, then $4MM is too less to retire
Too low. Unless you are in VLCOL
Nope! You need atleast 6.9 M to retire happily and have 69 with your sugar baby
Take your annual expenses and multiply by 25 to get a reasonable retirement target. If based on your age you will have to live for a while without SS/Medicare then bump that 25 up to a somewhat higher value. I bet for most people who aren’t living luxury lives or who don’t have large families to support $3 million would be plenty, and $2 million would be fine for some who live in a pretty cheap way.
This is why having a paid off home is important
No, it's not. It's all about income minus expenses. It doesn't matter if your home is paid off if your safe withdrawal rate allows you to continue to pay the mortgage.
Yeah that's true because you don't charge your phone
Including 401k?
It’s reasonable, allowing for a $120K annual withdrawal from your portfolio. 4% from the Trinity study was predicated on a 30 year retirement, and did not involve today’s high Cyclically Adjusted Price to Earnings ratios forecasting lower growth in the equity component of your portfolio.
What are your expected expenses?
Healthcare, rent, electricity, vehicle, sugar baby, phone, Internet. Just the essentials really
Sugar baby is not a necessity