What's Your Number?
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No, not that number.   You know the questions, how much money would you need in the bank to stop working?  Or, for the rest of us mortals, how much money will you need to retire? It is surprising how few people save or place any importance on savings.  True, it is hard to do so in New York City.  That said, it's important to build up a nest egg, lest you find yourself at the age of 70 with no choice but to keep working to support yourself, at a time when your health may not permit you to work or you might just not feel like doing it anymore!  You are never too young to start thinking about this. So how do you pick a number?  By considering a few factors: Vision:  How do you envision your retirement?  In New York City?  In Florida?  In Costa Rica?  In various places?  How much you will need is somewhat dictated by the cost of living in the area where you think you'll be. Health.  My grandmother's favorite thing to say was "Thank g-d for your health" and "as long as you have your health."  The majority of people face a major health problem at some point in their lives. The cost of health care, prescriptions, and treatment for chronic and non-chronic illnesses is astronomical and one of the leading causes of bankruptcy.  Even with a good insurance plan (Obamacare or not), these costs can derail any retirement plan.   Gene Pool. Consider the life expectancy based on your family members.  You may live as long or longer as your grandparents who lived to their 90s.  Retiring at 55 and reaching that age expectancy requires a great deal more of retirement income than retiring at 70.   Asset Allocation. Your asset allocation should change as you age.  A good financial advisor can help you determine what asset allocation is right for you given your age and goals. Spending. How much do you spend now?  How will your expenses change in retirement?  If you currently spend as much as 90-95% of your salary now, it is unlikely that you will change your habits when you retire without some serious discomfort. While financial advice is beyond the scope of legal advice for estate planning, it is a critical part of the process and should not be overlooked.

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