I have looked online for a calculator to figure this out but I can't find one that will let me input the info I want.
Assumptions
-I live to age 90
-I need $24,000/year to live on from now until then (I am 34 now)
-4% rate of return on investment
-I receive $1400/month from government, between age 65-90
Is there a calculation I can do that will tell me I need to invest $_________ if I want to stop working at age __________.
Short answer:
Retire
at Requires/yr40 $62,886
45 $27,991
50 $15,088
55 $8,466
60 $4,498
65 $1,896
Done using Excel's PMT and FV functions, some extra input cells on the 'Misc. calcs' tab of the
case study spreadsheet, and Excel's Goal Seek feature.
If you are interested in a summary of the gory details...:
1) Added input cells for the items below
Age now 34
Stop at age 40
SS start 65
SS benefit 16800
Need 24000
Death 90
2) Used 4%, 1, and 0 respectively for rows 18, 20, and 21 in columns C, D, and F
3) Entered formulas for row 19, using the "added input cells" above
4) Put "=F22" in C16 and "=D22" in D16.
5) Picked a number for "Stop at age"
6) Used Goal Seek to drive cell D22 to 0 by adjusting cell F22.
There are probably easier ways. :)
Note that this assumes steady returns, and thus ignores "sequence of returns" risk. But it gives you a ballpark....