Q: How do I calculate how much I need to invest in order to retire?
A: Investors with retirement in their sights are often looking for their magic "number."The number, as this elusive figure is commonly known, is the size a nest egg must be for an investor to comfortably retire. The right number is different for everyone, meaning it's up to each person to calculate it themselves.
There's no shortage of online calculators that claim to calculate the number. But with something this important, it's best to stick with calculators from reputable sources: big mutual fund companies and brokerages, for example.
It's important, too, to note that most of the best calculators don't give you a number, but a range of numbers. Since there are some big unknowns when it comes to retirement planning, look for retirement calculators that give you best-case and worst-case scenarios.
It's wise, too, to compare the results of several calculators against each other to see how close they are.Then, ask an accountant or financial planning professional to go over the numbers with you.
Some of the online calculators worth checking out are offered by T. Rowe Price, Index Funds Advisors, Fidelity and Vanguard.
SOURCE; USA TODAY