Mirror Mirror on the Wall – Can I Retire After All?

This is the most common question we get when meeting with clients. You might remember a series of “What’s your retirement number” commercials from a couple of years back. Unfortunately, they grossly simplified the question then gave it a deserving answer.

The truth is, there are so many variables from one person’s retirement to the next that there’s no set dollar amount that works for everyone. People are different. We’ve met people with $500k that have enough and some with $5 Million that don’t.

This gap between your current scenario and comfortable retirement is called “Personal Financial Planning”, and it’s never too late to start.

When you first start planning, begin with your lifestyle goals and values, then imagine how they’ll change in your 70’s.

Next, you and your financial advisor can work together and take a detailed look at your current financial well-being. It's a bit like getting a physical for your finances. You should be checking the vitals (the key indicators) and being honest with yourself about your where you can improve.

Along the way, take a careful look at other key areas to make sure you avoid a preventable setback. Revisit annually to modify if needed and stay on track.

When it comes to planning and wealth building, there are no general rules about what is specifically best for you— That always depends on your personal scenario.

However, there are some general guidelines many find helpful:

Try to save at least 15% of income for retirement—employer matching counts too.
Save about 5% of your income unplanned expenses.
If you are in retirement, try to limit withdrawals from your savings to about 4% of your account balance.
Limit your monthly essential bills and housing costs to 50% of your monthly income.