How to Retire With $2 Million on an $80,000 Salary
If you follow a retirement planning guideline known as the 4% rule, you'll want to retire with a portfolio that's 25 times the amount you expect to draw from your accounts in your first year of retirement. If you follow that plan described by that guideline, you should be able to see your nest egg last at least through a 30 year retirement, while still adjusting your withdrawals for inflation every year. In that framework, a $2 million portfolio should be enough to completely replace an $80,000 salary.
That raises a great question-how do you build that $2 million nest egg on an $80,000 salary? After all, if you want to retire with that kind of portfolio, you need to be able to build it within your career. That's easier said than done, but it is within the realm of possibility if you start planning early enough.
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Source Fool.com
