This week, I’m talking about how to get back on track for retirement. 

Today I want to tell you about Joe. He’s 55 years old. He wants to retire in 6 more years. Currently, he has $576,000 saved for retirement, most of that is in his 401k plan at work where he’s been for over 20 years. He saves 5% of his salary into the 401k and his employer matches 4% - so 9% of his income is saved for retirement every year. 

He’s a single guy and makes $90,000 a year in income. He expects that his spending will go down in retirement, but he’s calculated that he needs about $78,000 a year in income to support the lifestyle he wants in retirement. 

He will have social security income, but the rest of his income will need to come from his portfolio. 

The question is: Will Joe be able to retire at 61 and spend $78,000 in retirement based on his current assets, and projected growth and his current savings? 

What do you think? Well, I’m sorry to say to Joe that he has about a 95% chance of running out of money in retirement? 

If I live his retirement 1000 times, in all but the most optimistic scenarios, Joe depleted all his savings and ran out of money well before he kicked the bucket. 

But by making a few adjustments, we can get Joe from a 5% chance of success in retirement to an 82% chance of success. It all hinges on what adjustments he’s willing to make and the 4 most important factors that determine success in retirement, which I’ll introduce and talk about tomorrow. 

In the meantime, if you want to run Joe’s numbers for your own situation, send me an email and I will send you a simple 2 page worksheet that you can use to calculate your chances of success and not running out of money in retirement. You can email me at [email protected]. That’s [email protected]. 

Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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