Planning for a vacation or for tuition bills is easy, you can pretty much know how much you’ll need for a specific goal. Retirement planning, not so much and that’s just one of the issues with planning for those long days.
While there’s no formal calculation to arrive at how much you’ll need, I’ve never seen one anyway, the post recommends 25-times your annual expenses.
I used to dream about early retirement but the meaning has changed for me over the years. I enjoy my work as an investment analyst and blogger and can’t imagine what I would do all day in “retirement.”
Joe points out a Fidelity study that shows the average retirement fund balance of those 55 and older is just $250,000 and nowhere near enough to last several decades.