3-Minute Reality Check: How Much Money Do I Need to Retire?
Are you wondering, “How much money do I need to retire?” Most people don’t know their real retirement number. That’s a risky guessing game!
This short video helps you find the answer with a three-minute retirement reality check to quickly assess where you are, what you may be missing, and how close you really are to your goals.
Watch now to find out whether you’re on track or you need to make some changes.
If you have questions about your retirement, book your free 15-minute consultation to get a personalized look at your retirement strategy.
Transcript
Are you trying to figure out if you’ve saved enough for retirement? It’s one of the biggest financial questions people face, and it’s not always easy to answer.
This simple three-step process can give you a quick snapshot of where you stand today, and it only takes a few minutes to complete.
So let’s get started.
Estimating Your Retirement Goal Using a Simple Formula
Most of my clients ask me the same question: “How much money will I need to retire?” Well, here’s a quick way to get a rough estimate.
Take your estimated annual retirement expenses minus Social Security or any pensions you may receive, and multiply that number by 25.
So if you think you’ll need about $60,000 a year in retirement, you should have about $1.5 million saved by the time you get there.
How to Know if You’re on Track With Your Retirement Savings
The question is, are you on track to reach that goal? Here’s another quick check.
How many more years are left before you want to retire? Now think about your savings gap. That’s the difference between what your target savings will be, what you think you’ll need, and what you currently have saved.
If we say your target savings amount is $1.5 million and you currently have $1 million saved, that’s a $500,000 gap. Now, based upon how many more years until you want to retire, let’s say that’s 10 years, that would be 10 more years to close the gap. So in my example, if it’s $500,000, 10 years left, you’ll need to save about $50,000 a year.
What to Do If You’re Not on Track for Retirement
I hope those two steps will give you a good basic idea on where your retirement savings stands today. If the math works out, congratulations, you’re right on track. Just stay the course.
If it doesn’t, you have options. You can work longer, save more each year, or cut your retirement spending. Taking a hard look at your retirement can be stressful, but it’s an essential part of having the retirement you’ve always hoped for.
Why It’s Important to Understand Your Current Retirement Position
The key is to take the time to understand where you are today and figure out what it is you need to get to the point where you want to be. Saving for retirement takes careful planning and intentionality. Whatever you do, don’t just hope it works out.
Get Help Building a Retirement Plan That Fits You
If you’re asking yourself, “How much money do I need to retire?” you don’t have to find the answer alone. I’m Joe Dowdall, and I’m committed to helping you build the ideal retirement that you’ve worked so hard for. Get started today with a free introductory call.
I can be reached at 469-423-1989 or by email at joe@worthassetmgmt.com. Thank you for watching, and I look forward to visiting with you soon.