Before you quit your job, find out if you have the money to start living the life of Riley or not. And to
Once you know how much money you need to retire, the next step is to see how much money you actually will have. This part of the exercise is pretty straight-forward. Just get the figures from your human resources department and the Social Security Administration.3. Will you be able to create enough income from your portfolio to make up the difference?
When you retire, you probably will need to dip into your savings. Don't feel bad about that. That's why you worked so hard and that's what it's there for. The question is,
As you can see, this is pretty straight-forward. It's not complicated at all. It's a matter of comparing your resources (passive income from pensions and Social Security and portfolio income from investments and real estate) to your use of resources (average cost of living, accounting for inflation). If there is a shortfall, you have to do something about it. You can either: