Wes Moss answers questions in this TIME Magazine article about the importance of building a sustainable nest egg and preparing for retirement.
Just how much money does it take to retire happily? And is there a point of diminishing happiness returns on the size of a nest egg? These are the answers to a survey that focused on asking retirees about net worth and income, assets and home equity.
So what’s the magic retirement number? Based on the survey, most people can be happy in retirement with savings of about $500,000. A higher number can buy more happiness, but only to a point.
“There is a plateau-ing effect above that number, and the higher you get the rate of increase gets smaller,” Moss says. “I call it diminishing marginal happiness.”
Read more in the original article on TIME Magazine’s website.