How Long $1 Million Will Last in Retirement
Presented by Marc Aarons
Today, I’m reaching out to offer some insights that will help you stay focused and discern sound retirement advice from outdated adages that no longer apply in today’s economic landscape.
You’ve likely heard the maxim that reaching $1 million in savings for retirement is a hallmark of financial readiness. Indeed, it’s a symbol of prudence and planning. But shifting economic trends and your personal retirement goals raise an important question: Is $1 million enough?
With that in mind, here are three considerations we can explore in more detail if you’d like:
- Location matters. The choice of your retirement destination can significantly impact the longevity of your savings. For instance, in states with lower living costs, like Mississippi, $1 million can last for approximately 22.7 years. It extends to around 19.8 years in North Carolina, while in Hawaii, your $1 million nest egg would last just over a decade. With the average length of retirement hovering around 18.6 years for men and 21.3 for women, location should be top of mind in your planning.
- Define your “comfortable.” The concept of a comfortable retirement varies from one person to another. The financial needs of a retiree looking for a relaxed, small-town retirement differ substantially from those of an adventurous globe-trotter. Knowing yourself and how you envision your golden years is vital.
- Stay consistent. Regardless of whether retirement is years or months away, making regular contributions to your savings, even in modest increments, can have a significant cumulative impact over time. It’s a proven strategy for building a substantial retirement fund.
With the right tools and professional guidance, it is possible to align your investments with your preferred retirement location, lifestyle objectives, and current financial standing. Don’t hesitate to reach out if you are unsure if your current financial plan accomplishes that objective.
I’m here to help and would be happy to be a part of refining your plan. Call the office or email me at your convenience, and we’ll get started.
Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com
www.ocmoneymanagers.com
This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
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