Retirement calculations are all about the numbers. How big will your nest egg be? How much money will you need to earn in retirement to maintain your pre-retirement standard of living? What type of investment returns should you plan for? How long will you live? Lee Eisenberg even wrote an entire book several years ago about “The Number.”
Let’s restrict today’s numbers to three key figures: 1) the percent of your pre-retirement income you will need to maintain your current standard of living during retirement; 2) the amount of money you will need to sock away to achieve this replacement rate, and 3) how much you can pull out of your portfolio each year and still have a good shot at not outliving your money in retirement.