How Much Do You Need to Retire?

A common guideline is the 25x rule: multiply your expected annual retirement spending by 25 to find your target nest egg. This is based on the "4% rule" — withdrawing 4% of your portfolio per year, which historically has lasted 30+ years in retirement.

How Much Should You Save Each Month?

Financial advisors generally recommend saving 10–15% of your gross income for retirement. If you're starting later, you may need to save more aggressively. The earlier you start, the less you need to contribute each month thanks to compound growth.

401(k) and IRA Contribution Limits (2024)

The 401(k) contribution limit is $23,000 per year ($30,500 if age 50+). The IRA limit is $7,000 per year ($8,000 if age 50+). Maxing out tax-advantaged accounts before investing in taxable accounts is generally the recommended order.

What Return Rate Should I Use?

For long-term retirement planning, 6–7% is a conservative but realistic assumption after inflation for a diversified stock/bond portfolio. More aggressive stock-heavy portfolios might use 8–9%; more conservative mixed portfolios might use 5–6%.

What is the 4% rule in retirement?

The 4% rule states that you can withdraw 4% of your retirement portfolio in the first year, then adjust for inflation each year, and statistically have a very high probability of not running out of money over a 30-year retirement. It was derived from the Trinity Study analyzing historical market data.

Should I use a Roth or Traditional IRA/401(k)?

Traditional accounts give you a tax deduction now but you pay taxes on withdrawals in retirement. Roth accounts use after-tax money but withdrawals are tax-free. Generally, Roth is better if you expect to be in a higher tax bracket in retirement; Traditional is better if you expect a lower tax bracket.

🏖️ Retirement Savings Calculator

How Much Do You Need to Retire?

How Much Should You Save Each Month?

401(k) and IRA Contribution Limits (2024)

What Return Rate Should I Use?

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