http://gotoretirement.com/2009/10/calculating-retirement-income-replacement-ratio/?utm_source=rss&utm_medium=rss&utm_campaign=calculating-retirement-income-replacement-ratio A Baby Boomer's Journey from Retirement Planning to Retirement Living Tue, 31 Jan 2012 12:54:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://gotoretirement.com/2009/10/calculating-retirement-income-replacement-ratio/comment-page-1/#comment-1885 Randy Mon, 16 Nov 2009 06:05:08 +0000 http://gotoretirement.com/?p=4228#comment-1885 My quick and dirty method: if you are a fortunate boomer currently in your peak earning years, with little or no debt (home is paid for or nearly so), and a good rate of saving, you would not need nearly as high an income during retirement as many so-called experts claim. First, deduct all of the income (and associated income taxes being paid on it) required to make the house payment and fund your saving rate. Next, deduct the income to be replaced by social security. Then be sure to add in more money for health care insurance premiums and additional vacations, and don't forget the impact of inflation. My quick and dirty method: if you are a fortunate boomer currently in your peak earning years, with little or no debt (home is paid for or nearly so), and a good rate of saving, you would not need nearly as high an income during retirement as many so-called experts claim. First, deduct all of the income (and associated income taxes being paid on it) required to make the house payment and fund your saving rate. Next, deduct the income to be replaced by social security. Then be sure to add in more money for health care insurance premiums and additional vacations, and don’t forget the impact of inflation.

]]> http://gotoretirement.com/2009/10/calculating-retirement-income-replacement-ratio/comment-page-1/#comment-1822 Gary Silverman, CFP Fri, 30 Oct 2009 20:22:27 +0000 http://gotoretirement.com/?p=4228#comment-1822 Absolutely! Thumbrules are for thumbs. The only way you'll have any true knowledge of your retirement income needs is by creating a retirement budget. Of course, it's like pulling teeth to get people to work on a current budget, let alone a budget projection, but it does need to be done. Absolutely! Thumbrules are for thumbs. The only way you’ll have any true knowledge of your retirement income needs is by creating a retirement budget. Of course, it’s like pulling teeth to get people to work on a current budget, let alone a budget projection, but it does need to be done.

]]>