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How much do I need to have in my nest egg to hit the road?

Well, first we'll take the conservative approach, and then the not as conservative approach. Both examples assume you can live on $16,000/year. If you need more, replace the $16,000 with your number when calculating:

  1. If you think you will only receive a 6% return on your investment, then your nest egg should be around $267,000. That's figured by dividing your annual needs ($16,000) by 6% (.06).
     
  2. If you think you can get a 10% return on your investment, then your nest egg should be around $160,000. That's $16,000 divided by.10.


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