Over five years have passed since I first joined LeConte. I‚??ve engaged with hundreds of folks on all things financial. One question has remained consistent across prospects and clients who have retirement on their mind: ‚??Do I have enough?‚?Ě
A Google search of this question suggests answers. Here are a few:
1. $1 million.
2. Approximately 80% of your annual pre-retirement income.
3. 10x your salary by age 67.
4. 12x your pre-retirement salary.
5. Use the 4% rule.
A report suggested that American‚??s will need $1.25 million to have enough throughout retirement. Here are the report highlights:
1. 43% of Americans do not expect to be financial ready when retirement should occur for them.
2. 45% don‚??t expect Social Security benefits to stick around.
3. Americans extended their working years to 64 from 62.6 last year.
4. 33% predict they have a 50% chance to outlive their savings.
5. 25% plan to retire later than they had anticipated.
If you‚??re like me, sometimes statistics can be a head scratcher. I think about the data, how it was collected and if it truly does represent the population the reporter says it does. My conclusion typically finds flaws in the data; hence, I shouldn‚??t put too much emphasis on the findings. Don‚??t get me wrong, we can glean some information from the report and the Google search, but these bullet point lists are unrefined noise. There is no one-size-fits-all solution, as each individual and household is different. We all have different starting points, goals, resources, and risk tolerances.
Our solution to refining this financial noise is called Purpose Built Planning¬©. We built it around three financial pillars: 60% of adults that does not have a valid will; hopefully by the end of the post you will be motivated to do so.