POST 50
01/15/2012 08:07 am ET

Focus On Cash Flow For Retirement

Retirement savers are often discouraged by the large number they get from retirement savings calculators and financial advisers. Let's say you need $2,500 per month to live comfortably in retirement. You will need to have $1.5 million in your retirement portfolio to produce this monthly income using a "safe" 4 percent annual withdrawal rate that is likely to allow your savings to last for 30 years.

Over a million dollars is already an inconceivable number for most of us to grasp fully, and our monthly expenses will probably be more than $2,500. The higher your monthly expenses, the bigger the retirement fund you need to have. This big retirement goal discourages most regular people so much that they just ignore retirement investing.

Read more on money.usnews.com

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