A common question when it comes to retirement is, “How much do I need to have saved to live comfortably?” You’re probably asking yourself that question all the time. It might even be something that causes you a lot of anxiety. You don’t want to have to work into your 70s or even your 80s, so how can you be sure that you have enough saved?

Start by considering how much you expect to need year-to-year in retirement. Let’s say it’s about $50,000 a year.

Next, take a look at your current investments and consider how much you expect to get from them in a single year. And (most importantly) be realistic about how much you expect to get from your investments. You’re probably not going to see a 20% return on your investments.^[1] You’re probably not even going to see a 10% return.^[1] Let’s expect a more reasonable rate of return of about 5%.^[1] At 5%, how much would you need to hit your mark? Let’s say you aim to receive an additional $25,000 from Social Security. To attain this goal with a 5% return rate, you would need a $500,000 investment. The investment yield plus Social Security would fulfill the $50,000 target. Of course, the more you have in that principal investment, the lower the yield you’d have to reach, thus the less risk you’d have to take on.

However, this simplistic approach overlooks potential opportunities to reduce expenses and optimize your income needs.

That’s where a well-crafted retirement strategy becomes invaluable. By leveraging financial products and strategies, you can maximize the value of your savings during your retirement years. A thoughtful withdrawal strategy ensures timely distributions from retirement accounts, avoiding unfavorable market conditions. This approach allows you to strategically manage the timing of your withdrawals so you don’t end up withdrawing funds when the markets are performing poorly.

Additionally, an insurance strategy provides coverage for unexpected expenses, minimizing financial setbacks. With the right insurance coverage, you can protect yourself from unforeseen circumstances that could derail your retirement plans. By having appropriate coverage, you can have peace of mind knowing that unexpected healthcare costs, long-term care expenses, or other emergencies won’t deplete your retirement savings.

Retirement planning is not solely about reaching a wealth or income milestone; it’s about strategically positioning your assets to support a stable and fulfilling retirement. It’s about creating a comprehensive plan that considers your unique financial circumstances, goals, and risk tolerance.

Crafting and maintaining such a tailored strategy requires dedication and expertise. If you find the prospect overwhelming or if you’re unsure about the best way to navigate the complexities of retirement planning, our team of skilled professionals is here to guide you. Don’t hesitate to reach out to us and take the first step towards a secure and fulfilling retirement.