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?�?�
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A Google search of this question suggests answers. Here are a few:
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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.
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A report suggested that American�??s will need $1.25 million to have enough throughout retirement. Here are the report highlights:
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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.
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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.
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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.