Planning for retirement can seem tricky, but there's a simple rule to help! It's called the $1,000 a month rule. This rule helps you figure out how much money you need to save so you can have money each month when you're retired.
- For every $1,000 you want each month in retirement, you should aim to save about $240,000.
- This is based on a 5% yearly return on your savings and taking out 5% each year.
- This helps ensure your money lasts throughout retirement.
| Monthly Retirement Income | Savings Needed |
|---|---|
| $2,000 | $480,000 |
| $3,000 | $720,000 |
| $5,000 | $1,200,000 |
