How do I know how much I need to save for retirement?
Fritz Wood, CPA, CFP
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"First, add up your cash flow from all sources, including Social Security, income from rental properties, and any pension,"
says Fritz Wood, CPA, CFP, Veterinary Economics Personal Finance Editor and a financial consultant who owns H.F. Wood Consulting in Lake Quivira, Kan. Unsure about your
Social Security benefits? Check out
http://www.ssa.gov/ to find out how much to expect. "Then, if you want $75,000 in annual income and $15,000 comes from Social Security and $30,000
comes from rents collected, you need to save enough money to pay yourself $30,000 annually. A good rule of thumb: Save 25
times the yearly amount, which is $750,000 in this case," Wood says. Want more information? He says to visit
http://www3.troweprice.com/ric/RIC/ for a great online retirement-income calculator.
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