Magic Number for Retirement

It is always amazing to me when I read articles that suggest a magic number for retirement.   I don’t think there is one magic number that you need to reach in order to retire.  I will tell you every couple has a different set of expenses and varying income levels.  There isn’t an easy solution.  I work with people to not only save for retirement but spend in retirement.

I look at the basic living expenses, what you need to keep the lights on.  This includes:

  • Housing
  • Automobile
  • Utilities
  • Food
  • Insurance

Next up is the extras

  • Vacations
  • Education Savings for grandchildren
  • 2nd homes
  • Helping out children financially

After we review the expenses, we look at income sources.  Each income source is a ‘bucket.’  Buckets include social security, pensions, savings, 401k, and other retirement savings plan.  We then look for the holes and come up with a plan.

Happiness in Retirement

Our whole lives we have worked hard with one goal in mind. RETIREMENT. We work with clients to make sure they can enjoy retirement. Recently, I read an article that said in order to be happy in retirement have 3 hobbies. These hobbies may include:  bridge, golf, restoring a classic car or gourmet cooking-it is an endless list. The idea is that you fill your time with activities that add to your life.

I particularly like the idea of volunteering my time. Whether it is holding a baby in the ICU, dishing out food for a local soup kitchen or walking a dog for a rescue organization, why not do a little good while retiring. And for some spouses out there, it may be hard to adjust from the business world, look and see if you can lend your experience to a start up.

The idea is to simply embrace this new chapter and look for ways to enjoy life.

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