$500,000 Retirement Account Case Study

Did you know that a 65 year old with a $500,000 retirement account that earns 8% per year and withdraws $50,000 per year (increasing 4% each year for inflation) will be broke by the time they are 77 years old? Knowing you only have 12 years of income with little to no earning potential is enough to make anyone sick to their stomach. Meanwhile a person with $844,000 in their retirement account with the same scenario will make it past age 90!

Very few people understand how much they need in savings to maintain their current quality of life and spending habits in their retirement years. If you are like most folks and have not done a phenomenal job building your asset base, diversifying your income stream, and minimizing your liabilities then you would benefit greatly by getting assistance from an objective, unbiased, and transparent advisor like us.

When we work with a client forecasting their income needs we examine what return on assets they need to meet their income needs and how this needed return fits within their risk tolerance and current market conditions. Often times concessions will need to be made either on current spending and savings habits or income desires in the retirement years. This is not an easy task to tackle and it needs to be addressed NOW rather than waiting and let the current situation worsen.