Why 25 is the best number to multiply

When it comes to retirement, nothing is more important than being prepared. Whether starting early or late, it’s the ‘starting’ that matters.

A good rule of thumb is the 25x Rule; it’s an easy way to estimate the amount you’ll need to save for the income you want.

It’s simple to apply – you’ll need to consider your retirement needs (and wants). Will you live simpler when you retire or more lavishly (think travel)? How will a higher cost of living affect you? How comfortable do you want to be?

Next, you’ll figure out a general budget for the retirement you envisioned. What will be your yearly costs? Multiply that amount by 25 to develop a rough outline of the money you need to save by the time you retire.

For example, if you want to live off of $75,000 per year in retirement, multiply that by 25. You’d need roughly $1.8 million saved by the time you retire.

If that seems daunting, you might need to work on your financial goals to get you where you need to be. We can help you map it out based on your unique circumstances with a complimentary 15-minute consultation. Give me a ring at (330) 836 7800 ext.1 or set up a time in my online scheduler.