[Dan]

A good way to get in the ballpark is to multiply your annual expenses by 25:

100,000 annual expenses

2.5 million nest egg

(4% withdrawal rate = $100k)

Of course, other income can reduce the size of necessary nest egg.

If you have a pension or cash flowing real estate to cover some of your expenses, then you don’t have to have such a large nest egg.

IMO, reducing the expenses is the most important part of the equation.

No credit cards/loans, paid off home, simple means…

you can retire much sooner.

[Kenneth]

Figure out present and future expenses first. Then compile funds that will cover those expenses with a bit of float.

[Sarah]

Depends on your definition of comfy and what that costs. Personally I am not a lavish person so as long as my food, housing and travel are covered, I am tickled pink.

For others it might mean a Porsche on the driveway and 4 homes around the world.

[Author]

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