The answer to this inquiry should just be a giant question mark. It’s not until you do more planning that the answer becomes more clear.
Outliving retirement money is one of the top fears for people who are starting to prepare for their retirement years. That’s why when I read headlines that say, “Here’s how much money Americans think they need to retire comfortably.” I take it with a grain of salt. There are so many variables.
Still want a number?!?
$1.9 million is the number, this according to a Charles Schwab nationwide survey of 1,000 employed 401(k) participants. 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.
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, and risk tolerance. The process should take into consideration all your potential sources of retirement income, and 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. We can help you develop a retirement strategy and show you investment ideas designed to help you pursue the retirement of your dreams.