Share this Page URL

Chapter 5. Developing Your Retirement Pl... > Eight Steps to Financial Independenc... - Pg. 59

Developing Your Retirement Plan 59 Step Six: Determine the Additional Money Required to Fund Your Retirement Goal It's now answer time. In Figure 5.11, we tally up what John needs and subtract it from what he's saved. The total answers the question: How much money does John need to save between now and retirement? The answer: A LOT! About $689,475 to be exact. Figure 5.11. Step Seven: Determine How Much You Need to Save Every Year to Meet Your Goal To turn our calculations into an action we can take, we need to figure out how much of our pay we should be saving every paycheck beginning today. We go to Figure 5.12 for our savings factor and multiply that number by the amount of money we need, the scary figure in box J. That gives us the amount we need to save each year until we retire.