Retirement planning can be a scary thing. You may feel that you are not prepared or worry that you don’t have enough. All those years of savings may now be your only source of income and it would be very unfortunate to need to return to work. Plenty of “experts” offer all sorts of advice on what you should do to prepare for retirement and how to manage your retirement funds when the time does come. There is quite a lot of variability when it comes to finances and few things, if any, will work for everyone. So please be careful as you plan out your finances, get multiple opinions, and try to find a good financial adviser you can trust to point you in the right direction. If you haven’t yet found that trustworthy person, here is a list of nine common retirement recommendations that you probably should just ignore.
1) $1 Million Is The Magic Number
Often it is stated that one million dollars is the golden standard for how much you should have saved when you begin your retirement. This is a nice, round, clean number that seems reasonable as it should last you roughly twenty five years. For many people $1,000,000 may be enough or even more than they need; however, there are a few issues with this standard. For starters, one million dollars is not as large of a number as it used to be. Some estimates put yearly living expenses in retirement as high as fifty thousand a year! This can very quickly dry up your savings and leave you with some very humbling options in retirement. Secondly, any “standard” is something to be wary of as no two humans are so alike that any calculated average or prediction will fit everyone’s retirement lifestyle. If you expect to travel a good deal and pick up several new hobbies then you should, as should everyone, sit down and decide how you want to live out your retirement and do some proactive financial planning.
Click below to share this article.