This is one of the most commonly asked questions that we hear in our office, “How much do I need to retire?” There isn’t an easy answer to that question. Each person is different, so their needs in retirement are different as well. One person might need thousands of dollars each month from their investments to live comfortably, while another is comfortable living on their Social Security with little or no need for investment income.
When I get this question, I always follow up with the question: How much do you plan to spend in retirement? It might seem funny, but we are essentially helping our clients build a budget. Sure, you have been budgeting most of your life already, but budgeting for saving. In retirement, we now have to budget for spending. Based on what your income sources are, how much you typically spend annually, adding in some retirement goals (new car, cabin, RV, charitable giving, etc.), and possible inheritance goals, we can help clients build a Retirement Plan (or budget!).
Once a client has a retirement plan, then we can comfortably answer the question, “How much do I need to retire?” As Ben mentions in his book, Repurposed: The Untold Story of Retirement in America, you wouldn’t want to build a house without blueprints, so why would you retire without a plan?
If you need to get started or would like a no-cost review your Retirement Plan, give us a call at 320.222.4236.