Saving for retirement is easiest with a long runway, but that’s not possible for everybody. If you need to save enough to retire in 15 years or so, it’s possible, but you need to be diligent. Plus, some good fortune (like high earnings and good health) would be helpful.

Start by figuring out how much you need to withdraw each month or year. After Social Security or pension payments, you may have a gap that you’ll fill. To do so, you take withdrawals from your retirement accounts, but we want those withdrawals to last for the rest of your life—running out of money early is not an option.

For this example, we’re using the opposite of the 4% rule, or the Multiply by 25 rule. That might be appropriate if you’re retiring in your 60s or so. Some people use this at a much younger age, as well. However, remember that this rule might not account for things like inflation, taxes, and other retirement pitfalls.

Once you know how much you need to save up, we figure out what it takes to get there. You’ll presumably save each month, and you might get help from your employer. 401(k) or 403(b) plans can help you manage taxes as you save.

Your initial calculations may be a bit overwhelming. If that’s the case, just do what you can with the resources you currently have available. Things could change—you might get raises, advance in your career, or see other changes in life. By taking steps today, you make it easier in the future.

The calculators shown in this video are located at [ Ссылка ]

Justin Pritchard, CFP® is a fee-only financial advisor in Colorado, and he works with clients throughout the U.S. If you’d like to discuss working with Justin for retirement planning or investment management, please reach out.

Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

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