Figuring out your retirement road map is fairly simple, a little bit of multiplication, addition and some division will do the trick.

1. Figure out how much you will need on a monthly basis. Gone are the days of experts who tell you that you will only need 80% of your current income to retire. With rising costs, especially medical costs, you will most likely need the equivalent of 100% of your current income.

Hypothetically speaking if you are living comfortably on $5,000 a month today, then you will need a minimum equivalent of $5,000 a month in retirement.

I use the word “equivalent” because you have to adjust for inflation, which is on average 4% a year. The equivalent of $5,000 a month 18 years from now at average of 4% inflation would be $10,000. Another 18 years and that would make it $15,000.

So if you were 24 years old and making $5,000 a month, you will need $15,000 a month when you turn 60 years old just to keep your current lifestyle.

2. Figure out how long you will need this income. Most people call it quits once they hit 60 years old, unfortunately that number is on a upward trend. Some people are waiting longer before they retire for a bunch of reason but mostly because they have not saved enough. But lets take the example of retiring at 60. The average life expectancy is now hovering around 90 years old. Age 60 to 90 will give you a nice long 30 years of retirement. Not bad, if you have enough saved.

Let’s use the example from Step 1: If you need $15,000 a month for 30 years how much would that add up to?

$15,000 a month x 12 months x 30 years = $5,400,000 that’s $5.4 million dollars

3. Monthly Contribution to freedom. Now let’s figure out how much time you have to save and how much you should be saving. Age 24 to age 60 gives you 36 years to save. If your retirement vehicle is averaging 8% annually then in those 36 years you should be saving a minimum $2,100 a month to hit $5.4 million. Now that’s a stretch, but mathematically possible.

4. Discipline. Would you be able to save and invest $2,100 a month for 36 straight years? It’s doable, but are you willing to do it? Mathematically speaking taking into account the annual 4% inflation against your money and with an average 8% annual interest working for your money, a disciplined 24 year old can start her path to retirement.

*This calculation does not take into account fees or expenses or taxes associated with any particular investment vehicle or savings plan.