Is 70 or 80 percent of my current income enough to live on?

I would be happy if I never heard those numbers quoted again. Ever since you started working, I’m sure you have heard the argument about why you will need less money in retirement:

• Since you won’t be working, you won’t be buying as many clothes or lunches.

• You won’t be driving to work, so commuting costs will disappear—and maybe you and your spouse can get by with one car.

• Since you are going to be earning less, your federal and state tax bills will decrease. To all of which I say: Phooey. Implicit in this argument is people are willing to cut back once they retire. Hogwash. I don’t know of a single person—and certainly not a single baby boomer—who wants to do with less. Why would that change in retirement? Sure, there may be no commuting costs, but you will be free to travel. If you have structured your 401(k)s and other retirement plans correctly, there will be plenty of taxes to pay, and since you don’t want the divorce rate any higher, maybe holding onto two cars is a good idea.

I say: Plan on needing 100% of what you are earning now when you retire. The worst thing that can happen is you will end up with too much money, and that is a problem you can live with.