When you consider retirement, you probably think in terms of a “salary replacement” or how much money you’ll need each year to have the retirement you’d like.
Why then do you focus on how much money you have saved for retirement, instead of what that money earns?
When you measure your “pile of money”, you will always need to convert it to what you can spend per year. That conversion is a magical formula with a lot of assumptions. Many advisors will use a 3 or 4% rule. Meaning, you can spend 3–4% of your portfolio and won’t outlive your investments. Well, maybe1. But, the devil’s in the details, and the details are all about assumptions (it can be pretty hard to predict things, especially the future).
Why not just invest in such a way that you can measure your income directly? There won’t be any magic calculations required to figure out the quality of life you’ll have in retirement.