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Chapter 20. And Now It's Time to Retire > Getting Ready - Pg. 194

And Now It's Time to Retire 194 Many people don't want to bother with all the worksheets and all the hoops that financial planners ask them to jump through. These bottom-line individuals want to know how much they have to save and for how long to achieve their goal. The following table will help you decide how much you need to save each year and for how many years to achieve your financial goal. The chart makes the assumption that you will invest to earn a 9 percent return, which means that you will need to have a portfolio made up mostly of stocks or stock mutual funds. Subtract your current age from your ideal retirement age to determine the num- ber of years to retirement. Then match this amount with the amount of money you'll want to have available to find out what you need to be saving. For example, if you're 35 now and you expect to retire at 65, you have 30 years until retirement. If your goal is to have $500,000 in your nest egg, you will need to save $3,668 annually or $306 a month for the next 30 years. Table 20-1. Savings Goal for Retirement Years Until Retirement 10 15 20 25 30 35 $250,000 16,455 8,515 4,887 2,952 1,834 1,159 $500,000 32,910 17,029 9,773 5,903 3,668 2,318 $750,000 49,365 25,544 14,660 8,855 5,502 3,477 $1,000,000 65,820 34,059 19,546 11,806 7,336 4,636 If you have the luxury of 30 years until you retire, by following some very simple advice you will be able to achieve your fantasy. You're lucky! Why? Because time is on your side. And with time, you will be able to save and invest enough money to afford your dream.