It's the question people generally focus the most time on when contemplating retirement. Exactly how much is enough? Tough question, but luckily someone else has done the homework for you. The next best thing we have to a crystal ball is research published several years ago by William Bengen and Larry Bierwirth.
Bengen and Bierwirth were interested in determining not just what would happen to a hypothetical retiree’s portfolio based on historical averages, but what would happen to a retiree in any given 30-, 40-, or 50-year slice of time during the previous 80 years. In other words, if you were unlucky enough to retire during the worst 30-, 40-, or 50-year periods in our recent history, what size nest egg would have been enough to see you through your golden years?
Their research has become the basis of much of the conventional advice on how much to accumulate for retirement. For more details on that guidance, check out my post today at U.S. News & World Report, "How Much Money Will You Need to Retire?"
This is a post from Retirement: A Full-Time Job