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Is One Million Enough to Retire? The Answer May Surprise You.

Is One Million Enough to Retire? The Answer May Surprise You.

September 29, 2021

As a financial advisor, I’m often asked if $1 million is enough for retirement. The answer depends on many factors including the age of the individual, lifestyle expectations, legacy goals, and if the individual has other assets like a life insurance policy. I will tell you that it’s becoming less likely that $1 million is enough for anyone to retire on.

Here are four better questions to ask to determine if you’re prepared for retirement:

#1: What rate of return do you have to earn on your savings and investment dollars to be able to retire at your current standard of living adjusted for inflation, and have your money last through your life expectancy?

#2: How much do you need to save on a monthly or annual basis to be able to retire at your current standard of living and your money last until life expectancy?

#3: Doing what you are currently doing, how long will you have to work to be able to retire and live your current lifestyle until life expectancy?

#4: If you don’t do anything different than you are doing today, how much will you have to reduce your standard of living at retirement for your money to last to your life expectancy?

It takes more work to get to an answer to the questions listed above but you’ll have a detailed answer to whether or not you are financially prepared for retirement. We work with families to create The Purpose PlanTM, a financial plan that outlines their goals, evaluates their progress, and helps dreams come to life. Working with a financial advisor is a great way to ensure that you are on the right track with retirement and with achieving all the dream goals along the way. Whether it’s a new house or a vacation to Bali, it feels good--and a smart move--to have a financial coach in your corner.

How can you get the most out of your retirement savings?

We’ve seen individuals who have lost their entire life savings in the stock market. The exact reasons for this sort of tragedy vary, but they all come down to one truth: unless you follow the principles that are taught in The American Dream Experience, you are opening yourself up to huge risk. These principles include eliminating speculating and gambling with your money, accepting the fact that no one can time the market, and knowing that past performance is not a guarantee of future returns.

The American Dream Experience is a compelling encounter with clear, life-altering truths about economics and investing – engaging you in a profound exploration of your family’s financial future.

You’ll learn about an investment philosophy that is based on academic research and the studies of Nobel-Prize-winning economists. Here’s an article we wrote on 7 Things You’ll Learn at The American Dream Experience. We hope you’ll join us at a future event. Click here to find out more.