Many Americans do not do the math during their retirement.
More than 75% of people planning to retire have not calculated how much money they will need before taking the leap, according to the Four Pillars study from the 2020 New Retirement Study by investment firm Edward Jones .
Fortunately, CNBC has hurt the numbers, and we can tell you how much you have to save to get $ 50,000 in passive income each year with retirement.
First, some ground rules. The numbers assume that you will retire at 50, now save no money and plan to set aside a significant amount of your income to achieve your goal.
For investment, we accept an annual return of 4% when you save. We do not take into account inflation, taxes or any additional income that you may receive from social security and your 401 (k).
At retirement, we use the ‘4% rule’, which is a general principle that says you can comfortably withdraw 4% of your portfolio every year.
It is important to note that with the recent volatility in the market, there is a risk that you will lower your spending percentage in the future.
Watch this video to get a full breakdown of the numbers.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.