You’ve heard many times how you need a million dollars to retire. That number, as it turns out, may be off.
Houston financial advisor Samuel Rines says that number won't even work for Baby Boomers anymore.
“A million dollars is a $40K a year lifestyle, and a lot of people live a $60K a year retirement. So for boomers that number could be a million and a half or two million dollars,” Rines explained.
Inflation has something to do with it. There are other factors too. It also depends on where you live. But if you're in Texas, you have a better chance of making it in retirement than in other places.
“Texas is one of the better places to live. People come here from California to avoid their taxes. It is a cheaper place to live,” Rines said.
But he also warns that a million dollars a year in the bigger cities in Texas won’t get it done. And we told you Boomers might need more than a million dollars to retire. Rines says if you're a member of Gen-X or a millennial, that number could be as high as three million dollars for a comfortable retirement.