As a young professional and entering my 30s, I plan to retire at 50 in 20 years. Assuming I want to retire in US in MCOL-HCOL, What should be my target household NW in __20__ years? For fair comparison, * Target NW excludes house price etc * Target NW should include 401k and other tax accounts * Assuming a inflation of 2% ($ would depreciate 50% in next 20 years) I know all depends on cost of living and lifestyle, but assume a average to slightly premium lifestyle.
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Kids? Spouse? Parents to support? If it's just you 2-4m is more than enough
Do you have / want kids? How do you define premium lifestyle? How much do you spend per month today? Do you expect that to change much outside of inflation (eg lifestyle creep, kids, parent care)? Understand what your current costs are, both per month and yearly, and edit for what your goals are by the time you retire (eg things like kids college or private elementary, bigger house, etc). Then go look up FIRE information online (financial independence retire early) - there's a lot of information on different ways to calculate what kind of NW you need and how to think about it. I have what I consider a slightly premium lifestyle but to some of my friends it wouldn't be. It's all in what you want and I found going through my own finances (something that as I made more money I started to pay less attention to since I still save a bunch even though I spend $$$) was extremely helpful on understanding my spend and what kind of NW I would need to maintain versus adjust as needed. If I didn't buy a house, ever have kids, never have to help with parental care, I could retire early very soon. If I do any of those things it's a different story.
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