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Ways to Build Wealth Prior to Retirement

A few articles ago, we discussed the topic of “How much money do I need to save in order to retire.” The most common question we got in response to this blog, was “How do I get there? How do I generate enough money in order to live comfortably throughout my retirement? 

So we thought we’d share some ways you may be able to build up your asset levels to get to the magic number of savings you’re wanting to then retire and live off.

How do I calculate this number?

This is a pretty simple equation. Think about the age you’re wanting to retire and then forecast the age you think you’ll pass on to the next life. 
Take the difference between those ages and multiply this with an ‘income’ you’re wanting to allow yourself for every year. 

Let’s do an example:

Let’s say you want to retire at 70 years old and you forecast that you’ll live until you’re 85 years old. You’d like to give yourself $100,000 to live off each year. The magic number you’d want to save in order to reach this number is $1.5 million. This will ensure that you have enough money per year to live comfortably. 

savings increasing leading up to retirement