The general advice I've seen on retirement is about predicting the income you'll need when retired and determining if you're better off being taxed now on money you save or taxed later when you take it out. I've also seen the advice to save $1 million to have $40k a year and not touch principal.
When I grew up in the 80s my parents brought home $40k a year and it was a good middle class income. I used to make $40k and could not afford both rent and retirement savings in my high cost of living urban area.
It seems like a lot of retirement advice is also baking in the assumption that you will own a house with a mortgage fully or almost paid off. So I recognize that those costs are expected to be less. But I'm still unsure how to imagine the future considering inflation. Maybe in a metro area 30 years from now, it will take $80k to barely scrape by.
Any advice on how to think about this, and how to make realistic projections of what it will cost to live in the type of area you want to live 30-40 years from now?
Submitted October 24, 2017 at 08:37AM by stayonthecloud http://ift.tt/2z5bfkR
