Have you ever wondered how much you need to save for retirement?
It’s a question that’s frequently asked by investors. However, depending on who you ask this question to, you’ll get some very different answers. Many will suggest a ballpark figure of a million dollars, while some advisors will calculate an amount through a formula based on your age, length of retirement, etc.
The truth is, when it comes to determining out how much you need to save for retirement, there’s no one-size-fits all answer. That’s because retirement savings is not universal, nor is it formulaic. Rather, it’s based on a plethora of factors that are just as unique as the rest of your financial life.
So if the amount you need to save for retirement is unique, how do you figure out the right number?
First, you need to determine your goals for retirement. For instance, do you plan to relocate in retirement, or perhaps downsize your home?
While these goals will most likely change over time, examining them will give you a solid starting line to determine how much you need to save for retirement.
Develop a roadmap
Just like when you’d take a road trip, once you have a destination in mind, you’ll need a plan in place to get there. For instance, you will need to determine what financial milestones you need to reach, and how to grow your wealth to reach those milestones. By implementing a retirement roadmap early, you can start taking small steps now rather than climbing a mountain later in life.
Want help developing a retirement game plan?
At LexION Capital, we can help you come to an understanding of your situation by helping you “pre-experience your retirement” — through wealth forecasting analysis that takes into account different market scenarios, different asset allocations, and different spending levels, an advisor can help you clearly envision how your retirement will play out. This way, you see how much you can safely spend every year, and how your portfolio will do throughout your retirement in a variety of possible scenarios. Don’t hesitate to contact us today to get started.
