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Section 1
Better word here.
Overview
You are almost certainly going to need more money over the
course of retirement than you think will be the case. The reasons
that you will need more money, as we discussed previously, are
many:
► Longer life expectancies mean more time in retirement.
► Traditional forms of retirement income are being
reduced or disappearing.
► Healthcare benefits for retirees are being reduced.
► Taxes are going to go up in the future.
Retirement now means many years, sometimes decades,
without income. If we assume a 4% inflation-rate adjustment,
you will have to more than double your income over the next
20 years in order to maintain the same level of spending power.
According to the financial publication By the Numbers, IRA
assets of $2 million are required to fund an income of $8,430
per month, which is just over $100,000 per year, for 30 years.
This assumes an annual increase of 3% for inflation and an
Chapter 2: You’ll Need More Money Than You Think
