1. Estimate Your Desired Income in Today’s Dollars

Ask yourself, “If I had all the money I needed to live in the way I want right now, how much income would I need per month?” Answer the question using today’s dollars.

Let’s say, to use a round number, you would like to have $7,500 per month. Check it out by revisiting the fantasy. Based on your current lifestyle, if you were to receive a monthly check for life, one that you could spend in its entirety and have it replaced at the end of each month, would $7,500 be the right amount?

Remember as you consider this amount that your expenses will change, but you still might want to use today’s dollars as a starting point. It’s true that you can expect some long-term expenses to go away, such as child ...

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