It’s probably the most asked question to any financial advisor, “how much money do I need? Is there a magic number?” First, everyone’s situation is different so everyone’s “magic number” will be different. There is no one standard that says once you have saved "X" amount of money you can retire. You actually need various types of income, that's where you hear about saving in different buckets of money. In this episode, Steve discusses those buckets of money, his process and how he treats his clients like family.

 

Retirement Fun Facts from The Motley Fool:

• The average American retires at age 63.
• The average retirement lasts 18 years, but many last much longer. Plus, who knows what the retirement life expectancy will be by the time you get there? I recommend that you err on the side of caution and plan on a 30-year retirement.
• You'll need $1,060,751 in savings if you expect to draw $5,000 per month for 30 years, assuming 6% annual investment returns and 2% inflation. Depending on how much income you expect from your savings, adjust this amount higher or lower to come up with your retirement "number."

 Americans know they won't have enough money, but still won't saveThe vast majority of those in the prime of their careers are aware they have a problem with their retirement savings. They're right.

• The average 50 year old has $42,797 saved. If you look at the retirement "number" from the previous section, it's easy to see that this isn't even close.
• The average net worth (assets minus debts) of a 55-64 year old is $45,447.
• 45% of Americans have saved nothing for retirement, including 40% of Baby Boomers.
• 38% don't actively save for retirement at all.
• 20% of Americans tap into their 401(k) assets early, either through a loan or withdrawal.
• 80% of Americans between the ages of 30 and 54 believe they will not have enough saved for retirement.

 

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