How much do you plan on having at retirement?
 

most of us wont have a pension and social security will be low so How much do you think you need.

I am 31 and I figure I need about 2.1 million in the bank to live a pretty good lifestyle when I retire at 63. Assuming I live to 93 and I take 75% of the equivalent of 8,000 a month out to live on (not counting assets such as house or cars etc..)

Mormon Red Death, it seems like you are assuming that the portion that you don't take out (every month) isn't growing at some rate in terms of your calculations:

2,100,000/(360) = $5,833 or 73% of 8000 dollars.

A simple way to think about it is if you when you retire you buy a 30 year annuity worth 2.1 million dollars. Suppose, the annuity pays 5% annually (but monthly payments). Then your monthly income from the annuity is, $11,273 per month. Of course, that is in nominal dollars and not real. Let's suppose you can get an annuity that pays a constant 2% annually in real dollars (kind of like an i-bond). Then the monthly income in real terms (relative to price levels the day you retire) is $7,762. Thus, 2.1 million should give you significantly more per month than 75% of $8,000.

I figured 6% return on my money until its out... Inflation was assumed to be 2.3% Hence 8000 today is worth ~14,500 in 2039

I misread your post then. Your planning on drawing out 10,875 (0.75% of 14,500) per month the first month and the withdrawals increase at the inflation rate (your expecting 2.3% per year) while the un-touched amount is growing at 6% per year?

All of it.

Next question, please?

thats about right...

Not too much, but that's why you have kids

This might sound weird to most people, but I don't plan on retiring until I am unable to work. I'll probably do something that has a flexible schedule so I'll be able to attend family functions, spend time with grandkids, and travel. I just can't picture myself eating dinner at 4:00 PM then watching Jeopardy and Golden Girls before my 9:00 PM bedtime. I get bored now if I take more than 2 weeks off. I can't imagine taking 20 years off.

I can think of a lot of other things I'd like to do with those 20 years than work for the "Man." :)

Stealing a quote here from another poster. "people who get bored when they are not at work are boring people".

Seriously, I can think of tons of ways to spend my time if I didn't have to go to work.