How Much Money Will I Need For Retirement?
“Will I outlive my retirement money?” That’s one of the top fears for people who are starting to prepare for, or are already in, their retirement years.
But just like most burning questions we have like, “When will life go back to normal?” – We just don’t have a clear answer.
And yet, there are a striking number of news articles scattered online that have headlines like; “Here’s how much money Americans think they need to retire comfortably.”
$1.9 million is the number, according to a nationwide survey of 1,000 employed 401(k) participants by the well-known financial services company, Charles Schwab. In 2019, the same survey reported the number was $1.7 million. But this year’s pandemic increased the total by $200,000.
Is $1.9 million a realistic figure for retirement? It’s hard to say. The survey didn’t ask participants how they arrived at that figure or what information they used to draw that conclusion.
What this survey really failed to account for is that not every individual is the same and therefore will not thrive by this one-size fits all retirement plan that the media consistently pushes out. The myth that there is a perfect dollar amount out there that will carry everyone into a successful retirement, is what we often talk about on our radio show.
Determining how much money you need in retirement is a process. It shouldn’t be a number that you pull out of thin air.
The process should include looking at your current financial situation and developing an approach based on your goals, time horizon, risk tolerance, and tax situation. You should take into consideration all your potential sources of retirement income, and also may project what your income would look like each year in retirement.
A significant figure like $1.9 million does little good if you’re uncertain what it means for your retirement years.
Let us help you develop a retirement strategy and show you investment ideas designed to help you pursue the retirement of your dreams – not someone else’s.