Putting a Price Tag on Life's Financial Goals

How much will life's major financial goals cost you--and which ones should you make a priority? Here's how they might line up:

• Retirement. This may be one of life's later goals, but it should probably be your first priority, because it will likely take many years to save enough. How big a nest egg might you need? How does $750,000 sound? That's how much would be required to generate 60% of 2011's median household income, which was $50,000 according to the U.S. Census Bureau. This assumes that, once you're s retired, you use a 4% portfolio withdrawal rate. You might need less than $750,000 for a comfortable retirement if you have a traditional pension plan. On the other hand, if your Social Security benefit will be modest or if your current salary is substantially above $50,000 and thus you're used to a move lavish lifestyle, you could need significantly more.


• Homeownership. Planning to buy a home? According to the Census Bureau and the Department of Housing and Urban Development, the average price of a new home was almost $280,000 in October. One piece of good news: Historically low mortgage rates should make your monthly loan payments more affordable.


• Raising children. If you have children, you might spend almost $300,000 to raise them through age 17. That estimate comes from the U.S. Department of Agriculture. And, no, college costs aren't included.


• College. According to the College Board, it currently costs an average $71,000 for four years of tuition, fees, room and board at a public college and $158,000 for a private school. Financial aid can lighten the burden, though more-affluent families should be prepared to shoulder much or all of the cost themselves.


• Nursing home. Most of us would rather not have this as a goal, but it's wise to be prepared. According to the MetLife Mature Market Institute, the average annual cost of a private nursing-home room was more than $87,000 in 2011, while the average for an assisted living facility was almost $42,000.

Citi Personal Wealth Management is a business of Citigroup Inc., which offers investment products through Citigroup Global Markets Inc. ("CGMI"), member SIPC. Insurance is offered through Citigroup Life Agency LLC ("CLA"). In California, CLA does business as Citigroup Life Insurance Agency, LLC (license number 0G56746). CGMI, CLA and Citibank, N.A. are affiliated companies under the common control of Citigroup Inc.