Putting a (Rough) Price Tag on Your Dream
Kiplinger's (03/01) Vol. 55, No. 3 p.48; Franklin, Mary Beth

The closer a person gets to the time they want to retire, the more that person needs to take an exact look at how much money they will need. Because income will be available from different sources at different times, Kiplinger's magazine recommends knowing exactly where your retirement money will originate. In addition to knowing the source(s) of retirement funds, you should also know how much of that money can be safely withdrawn each year--without running out of funds. Filling out a worksheet to get a quick overview of a person's retirement needs, writes Mary Beth Franklin, is paramount. Six steps are required to complete the early-out worksheet. These steps involve determining how much income you will need in retirement; how much you will get from social security and pensions; how big a nest egg you will need; how much you have already accumulated; how much you will draw from home equity; and how much more you need to save.

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