2 Things You're Probably Forgetting About When Setting Retirement Savings Goals
Setting retirement goals can be hard. Unfortunately, many people underestimate the amount they'll need in retirement -- especially when they're still many years away from leaving work. There are lots of reasons you may be dangerously wrong in guessing the amount you need, but here are two of the biggest things you're probably forgetting about.
When you're a long way from retirement and use a retirement savings calculator to figure out how much money you'll have in your 60s, you may see a big number and feel like you're in pretty good shape. For example, if you're 30 years away from retirement, contributing about $8,800 a year to a 401(k) and expecting to earn an 8% average annual return, you may feel comforted by the fact your retirement nest egg will be worth close to a million dollars.
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Source Fool.com