Planning for retirement today is a lot different than it was thirty years ago. Pensions are a thing of the past, the longevity of social security is iffy, and the stock market seems to be one bubble after the next.
Rules of thumb are attractive because they make the complex simple to understand. Believing that a certain dollar amount is the main factor that determines your retirement success may be misleading.
Years ago there was a popular TV commercial where a client was walking around with a large $1 million dollar theater prop under his arm. He was carrying this large number around town like a trophy and it took both arms to hold it.
But it turns out that a certain dollar amount is misleading if you don't factor in your projected retirement expenses and what your related cash flow might be.
You must avoid falling for expensive insurance and annuity sales tactics that are too good to be true. Variable annuity sales increase when the stock market has declined.