This is one of the top three questions that I work on answering every single day with my clients and with prospects that I’m talking to. It really is an important question. You don’t want to make plans for your retirement and then end up finding that you don’t have the money to do it. That would be a really frustrating and upsetting thing to happen in your life. Either you’d have to postpone your retirement or settle for doing less than you’d like in your golden years. Determining how much you’ll need to save to retire comfortably is indeed an important question.
FREE RETIREMENT VIDEO
I recommend you watch this video I recorded that goes through how to avoid running out of money and increase your retirement income. You are also invited to set up a short 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will
- go over where you are now,
- where you want to be,
- and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.
It’s not too difficult to answer, but it’s different for every single person. I don’t believe I’ve ever had two clients end up with the same exact number to save for retirement. You should have two goals: save for retirement to live comfortably, and plan for the worst. So you always want to test your investments by running them through some of the worst cases of stock market crashes that we’ve had throughout history to make sure that your financial plan is solid, so you’ll be more secure with how much you’re wanting to save for retirement. If you neglect a worst case scenario, then you can end up in a worst case scenario: running out of money at an age where you’re too old to go back to work. People always ask, well, does that really happen? Yes, it does. They are building new assisted living facilities all across the country, nursing homes are full, so there are many people that are running out of money. Of course, they have their Social Security that will come in, but they do run out of savings. In fact, most Americans die in debt.
Now, the clients that I work with are considered wealthy in world standards. They don’t feel wealthy, but the fact of the matter is they just plain are wealthy. But even so, the number that you’ll need to save to retire comfortably is going to depend on many things. First and foremost, we want to determine what your financial goals are, and compare those to the income that you have coming in. The expenses that you will have in retirement and the income that you will have coming in will determine how much you need to save for retirement to live comfortably.
You should have two goals: save for retirement to live comfortably, and plan for the worst.
The other thing we want to look at is longevity in our clients’ families. For example, both of your parents lived to be over the age of 90, and your health is good, so you appear to be tracking in that same direction. You’re probably going to require more money than someone whose parents both died in their 60s or 70s. Of course, we never know when someone is going to die, but life expectancy is something that we certainly look at, as we’re always trying to plan conservatively and for worst case scenarios. Of course, living to the age of 95 is not a worst case scenario, but your money doesn’t know that. It’s a worst case scenario to your money, and from a financial planning standpoint, that’s what we have to consider.
Click on the links below to subscribe to our YouTube or Podcasts channels called Cloud’s Retirement Chat. We offer valuable information in each show that can help you make wise decisions with finances:
Click here to watch my Free Video Presentation that Reveals…
How To Avoid Running Out Of Money In Retirement AND Potentially Increase Your Income In Retirement… By Making ONE Simple Change To Your Finances! You will learn:
- How one simple change to your finances can increase your retirement income
- How one simple change to your finances can help you avoid running out of money
- How to do all this without needing to invest more money or spend more time on your finances.
Or you are also invited to set up a 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will
- go over where you are now,
- where you want to be,
- and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.