Start with the income, not the lump sum
People ask, “how big does my nest egg need to be?” But the better first question is, “how much do I want to spend each year in retirement?” Everything else flows from that. Most people need somewhere between 70% and 85% of their working income to keep the same lifestyle, because some costs — commuting, and saving for retirement itself — go away.
The rule of 25
Here is a simple starting estimate. Take the yearly income you will want from your savings and multiply it by 25. If you want $40,000 a year from your investments, that is roughly $1,000,000. The logic comes from decades of research suggesting you can withdraw about 4% of a balanced portfolio each year with a strong chance it lasts 30 years. It is a starting point, not a promise — but it turns a scary question into a number you can work toward.
Social Security does part of the job
You will not fund retirement from savings alone. Social Security replaces a meaningful slice of income for most Americans — often 30 to 40 percent for middle earners. Your savings only need to cover the gap between what Social Security provides and what you want to spend. That gap is usually far smaller than the headline number.
Why starting early beats saving more
A dollar you invest at 30 can be worth far more at retirement than a dollar you invest at 50, because it has decades to compound. This is the single most powerful advantage most people leave on the table. If you are behind, do not panic — but do start. The best day to plant the tree was twenty years ago; the second best is today.
Where you keep the money matters
A 401(k), a Roth IRA, a traditional IRA, and a regular taxable account are all taxed very differently. Using the right mix — and, for business owners, the right company plan — can add years of spending to your retirement without saving a single dollar more. This is where a real plan earns its keep.
Make it real
A comfortable retirement is rarely an accident. It comes from a plan you can actually follow, reviewed as your life changes. We build that plan with you in plain language — no jargon, no pressure — and adjust it as you go.