How Much Money do I Need in My IRA/401K to Retire?

The simplest way to calculate the funds needed for retirement is;

How much do you need per month, times a percentage of the saved IRA/401K capital needed to meet that sum?

Social Security at age 62 is typically between $1000 to $1500 a month and you will need to find a way to provide the extra income needed to retire comfortably.

Social Security checks are considered passive income as you do not work as your checks come in.

For each passive $100 per month coming in from your IRA/401K (at the suggested "safe" average withdrawal rate as recommended by most financial advisers) is 3% to 4%, so it takes $30,000 in your IRA/401K for each $100 you passively earn each month.

A comfortable life of passive income is around $5,000.

Factoring this out to an additional passive monthly income of $3,000, including the $1,000 to $1,500 brings the total to $4,500.

The necessary "Safe" withdrawal rate of 3% to 4% turns the number needed in your IRA/401K to $900,000 as recommended by most financial advisers.

The typical American has not been able to save that kind of money in their IRA.

Another question to ask; "What is the typical rate of withdrawal required by government rules?"

I don't have that specific number and the government has and will change the rules as time goes on and as more and more Baby Boomers retire and more taxation income is needed by the government.

We welcome the suggestion via the contact us link on this website.

But the question begs, "Will the government require that you take out at a larger rate than that which is safe so that you have enough to fully last your lifetime?"

So, what do you do if you are not close enough?

We here at WMEU.org suggest that you consider building a "factory" where you can earn the difference needed to live a happy, productive and giving retirement.

A new factory today costs less than $100 a year and it consists of a laptop and a website.

YouTube has the instructions on how to build a JOOMLA or WORDPRESS based site and building this website can provide the income to retire very well financially.

You can build this online income while you are currently working making it virtually painless.

Getting a website to $1000 a month takes dedicated work but it is not that hard if you start early, choose a topic you love and work part-time at it.

We'll show you how if needed and we will help you build the site all while not charging you a dime as you grow!

Visit our sister website at Michigan Web Designer and learn how to get started.

Today, the rules of life have changed. The system is stacked against anyone trying to make a living via a job.

Employees are a commodity and today, you are easily exchanged for an employee requiring less pay.

It is not that the system doesn't like you, it is not personal.

It is simply that times have changed and now to get ahead, you need to change and take advantage of this new game of life.

When the rules of the game are stacked against you, you should play a different game.

Or, you can work at Walmart as a greeter.