How Much Money Do I Need to Retire?
No matter your age, it’s never too early or too late to think about retirement and asking yourself, “ How much money do I need to retire? ” If you and a spouse both bring in $42,000 a year from Social Security, but need $60,000 a year for your anticipated expenses, that means you’ll need $18,000 more a year. According to the 4% rule, you will need $450,000 in retirement savings/investments to generate the extra $18,000 a year. 4% of $450,000 is equal to $18,000.
The 4% Withdrawal Rule
For the past 25 years, people have used the 4% rule to make sure their income for retirement will be sustainable. The basic premise behind the rule is that you take out 4% of your retirement savings in the first year, and then increase the dollar amount each year after based on inflation.
According to recent data, retirement age people have only $140,000 save for retirement, which means $5,600 per year if you stay at 4% withdrawal every year. On average, this is far less income than many retirees depend on to supplement Social Security pensions.
Can You Retire on $1 Million?
The Cost of Living Index can help when determining how much you’ll need to save for retirement, whether you plan on staying in the state you live in or you have a specific location in mind. You can figure out house much it will cost you to live there and how much you’ll need. According to HowMuch.net, they were able to look at the cost of living index and figure out how much $1 million could get you in each state.
They found that, for places like Hawaii where the index is much higher, $1 million will only last you 13 years. In other places like Mississippi and Arkansas, it could last you more like 25 years.
Top 5 Money Friendly States for Retirement
- Mississippi – $1 million can last 25 years and 6 months
- Arkansas – $1 million can last 25 years
- Tennessee – $1 million can last 24 years and 5 months
- Kansas – $1 million can last 24 years and 5 months
- Oklahoma – $1 million can last 24 years and 4 months
Top 5 Money Unfriendly States for Retirement
- Hawaii – $1 million can last 13 years and 1 month
- Washington DC – $1 million can last 14 years and 2 months
- California – $1 million can last 15 years
- Oregon – $1 million can last 16 years and 7 months
- New York – $1 million can last 16 years and 7 months
In Arizona, $1 million can last you 22 years and 7 months while in New Mexico it can last you 23 years and 2 months. States with bigger cities like Chicago in Illinois, it’s estimated $1 million can last you just one month less from Arizona at 22 years and 6 months and the big retirement state of Florida lets $1 million last you 22 years and 2 months.
In the end, it will be important to consider the cost of living index for your state when you plan for retirement. The 3 main sources for retirement income include employment-related, government pensions, and personal investments. Ask your company about a 401K plan, and any other investments that you may be considering for your future endeavors.
TFC Title Loans Helps All Ages
Are you a younger adult planning for retirement or you are already in retirement mode? TFC Title Loans can help you with a boost of quick cash when you get an auto title loan. By using your vehicle as collateral for the loan, you can get anywhere from $2,500 to $50,000 with TFC Title Loans.
In order to get that money, all you need is a clear and free title on your vehicle and proof of income. Even if you’re retired and you don’t have a job, you just need proof of income and your social security or employment-related benefits count as income. We just need to know you will be able to pay the loan back.
Apply with TFC Title Loans for an Auto Title Loan
Applying with TFC Title Loans is easy, even if you don’t consider yourself computer savvy. Our online application takes less than 5 minutes to complete! Or, you can head into your nearest TFC location to have some help filling out an application with a representative.
Your representative may ask for a couple qualifying documents just to ensure of your proof of income, the vehicle’s title, and more. Once you’ve submitted those items, you’ll be able to head over to a TFC location to sign your documents. You’ll walk out with your cash in hand!
Don’t hesitate to call! See if you qualify for an auto title loan today!