Wonder how much money you will need to support yourself and your family in retirement? As I contemplate this I know an obvious question is “How do I want to LIVE in retirement?” To answer this question there are are actually two questions:
- How much do I need to pay my bills and just survive?
- How much do I want to lead the kind of lifestyle I want to live?
And finally, maybe some of you are also asking,
- What do I want to leave as a legacy to my loved ones?
Depending on the questions you ask, depends on the answers you will get from any financial planner.
At ApartmentVestors, we like to focus on assisting our clients with answers to all three questions. Steven Covey, New York Times Best Selling Author of Seven Habits of Highly Effective People, professes a principle we use regularly in our business planning and when speaking to our clients:
Begin with the end in mind.
So, rather than just saving as much as you can, as often as you can, be intentional and have a plan that will meet the goals and dreams you want to achieve. You might be able to “wing” some things in life, but when it comes to your financial security, this is matter than needs a proactive and well-thought-out plan.
Saving for retirement is not the same as planning for retirement.
Reactive vs Proactive: the market is always changing! My life keeps changing!
Are you thinking, “Yeah, I can make a plan, but so much is always changing, how do I know that my plan will work and actually produce for me the results I want?” You’re right, the market is always changing, circumstances in your life change, and therefore you must review and potentially revise or tweek your plan annually. However, there are some key financial principals that do not change. You need to be aware of these and ideally apply them to your financial plan and do everything you can to stick by them. Your planning and discipline now will reap benefits for you later.
Retirement: Biggest “purchase” of your life.
Has anyone ever told you that the money you’re putting away now is actually preparing you for the biggest purchase of your life? Yes, that’s right. Your retirement is your most significant and largest investment in yourself. Preparing for a time when you will either a) not want to work anymore and/or b) not physically have the energy: mental or physical, to work anymore, should be a huge priority for you. Start early and invest wisely!
There are many experts who can help you calculate how much you need to save. This calculator can help you get started: https://ffcalcs.com/how_long
As an illustration, a 25-year old who wants to retire at 60 with $0 saved today would need to save 15% of their income on average per year to have enough saved to live ~30 years after retirement. This doesn’t include social security benefits, but we believe those should be left out of your plans given the speculation that it could be bankrupt within the near future, depending on how the Congress handles the situation.
Retirement Creep
Where has the time gone? Are you closer to retirement than the years you’ve worked? We call this retirement creep! If you are nearing retirement, figuring this out is imperative so that you don’t outlive your money. To learn more, here’s a resource we believe you will find helpful: http://bit.ly/2LcYfQt
So, in summary:
- Be Proactive. Develop a plan.
– How much do I need to pay my bills and just survive? Use this calculator to get started: https://ffcalcs.com/how_long
– How much do I need to lead the kind of lifestyle I want to live? Use this resource to get started: http://bit.ly/2LcYfQt Speak to a financial advisor or trusted, seasoned investors.
– What do I want to leave as a legacy to my loved ones? Consider your options for investing your money into an asset that you will own…even if only a percentage of…like real estate.
- Re-Evaluate your plan every few years. Adjust as needed.
- Retire confidently. Don’t go through your working years putting off to tomorrow what you should be working on today. Put a plan in place to save for retirement TODAY and avoid the retirement creep.
There are many options for investing your money. We encourage you to educate yourself and learn what your options are.
- Consult with a financial advisor.
- Seek counsel from older people who have invested wisely and learn what are their secrets to success.
- Read this report to learn more about the advantages of investing in multi-family real estate, reference “Identifying High Performance Real Estate Investments – The 5 Step Formula for Investing Success?”http://bit.ly/2HPo4Ue This valued report will show you how to successfully invest in real estate. It will teach the principals that the financially set people know…and you can too.
- Interested in speaking directly with Spencer or Craig at ApartmentVestors? Sign-up today for a free 15-minute portfolio consultation: http://apartmentvestors.com/portfolioconsultation or call (913) 324-5900.