Does your current plan have you ready for retirement or not?
What if I told you to meet me for lunch at 12pm tomorrow in New York City?
This is what you’d probably do:
- Ask where we’re eating
- Look up directions on Google Maps
- Figure out if you should get a taxi / fly / hyperloop / drive / subway
After all this, you’re finally sitting across from me enjoying a delicious meal :-)
Now what does that have to do with finding out if you are retirement ready?
To plan for retirement you have to know where you want to go and plan the most efficient route to get there.
Select your financial target, plan the ways to get there and implement the plan.
It could be implementing tax free income strategies, recapturing transferred wealth, strategies to lower your income taxes, developing real estate income, etc.
It’s hard to figure out which way(s) to go. In this free guide, I will help you figure out if your current plan is enough.
On a scale from 1 to 10 how well prepared are you for retirement? Take a second and think about it… Honestly.
Hold on to that number, as we will get back to it.
First, we are going to go through a quick case study to help simplify things.
Mr. and Mrs. Jones came to see me a few months back with the intention of planning for retirement and reducing their tax burden.
Here is the Jones’ financial snapshot. Mrs. Jones is 42 and Mr. is 45. In today’s age, one of them has a good chance of living into their late 80’s or early 90’s. Below you can see their financials.
Based off the above information, do you think the Jones will be able to save enough to support them until their early 90’s and beyond?
If the Jones’ continue down this financial path, they will run out of money at age 76. Imagine trying to find a job at the age of 76 when you have been retired for over a decade?
Below is the total amount the Jones’ would save between now and retirement, it also shows what age they would run out of money if they stay the course on their current plan.
I Know you are probably thinking how could a household that is currently making $325,000 a year need between $683,867 and $975,632 during their retirement???
There are two reasons:
- Is what I like to call the everyday is Saturday rule.
Studies show that the average person spends the most money on Saturdays. Why? Because they aren’t working, they have more free time to do things. Eat out, go to shows, shop, etc... Link to study.
The same rules apply for retirement. The idea that you can retire at 80-90% of what you were making is a bit of a challenge because every day of retirement is Saturday. Unless you plan on staying home and doing less in retirement, then you will most likely spend more.
- The Second reason is inflation.
On average, every year inflation goes up by about 3%. (SEE STUDY HERE) After 20-30 years that percent adds up. To put this in perspective, the average cost of a car in 1980 was $7,210. Today the average cost is; $33,560.. Need I say more?
Running out of money in retirement is a HUGE fear of many Americans, but it doesn’t have to be.
Are you curious to know how your current retirement picture looks?
Take a couple minutes, fill out this retirement calculator for yourself, and see if you have enough money for retirement.
Now that you’ve run through the example yourself, does your money run out before your life expectancy?
If it does not, then you should know that you are in a better financial position than most Americans.
BUT, if it DOES, then you need a plan, a plan that is specifically designed for your unique situation. There is no such thing as a one size fits all financial plan.
We specialize in helping very specific kinds of individuals. If you would like to find out if we can help with your situation, you can schedule your complementary personal financial strategy session.
If we are not a good match we will let you know and refer you to someone that can help you.