We get it. You are on a high income, the tax you pay is just as high, and you are looking for ways to reduce your tax. This article will discuss strategies to reduce taxes and build wealth simultaneously. These strategies are designed for people like you, high-income professionals and executives, and they can save […]
How Much Money Will I Need To Retire Comfortably?
Being a financial advisor for over a decade now. There is one question I get asked all the time.
How much money will I need to retire comfortably?
Most people don’t know the right answer and they assume their super will be enough to carry them through retirement.
However, there is a rule of income you should be aware of.
As this will dramatically help determine how much you’ll actually need to remain comfortable.
You need at least 70% of your pre-retirement income to maintain your current standard of living as you enter into retirement.
For example, if someone has a household income of $250K gross this is roughly around $175K net.
Which means they would need about $125K in retirement income.
Based on the nest egg of $3.0M in super at a 4% return rate, this would generate you $125K a year in retirement.
However, in most cases many people are well short of the $3.0M nest egg excluding your family home as well.
Therefore, they end up being very underprepared for their retirement and can’t afford the usual standard of living they’re used to.
So remember, if you’re planning on slowing down with work soon it’s important to accurately break down your figures.
In order to secure the life you’ve always wanted when you retire.
QUOTE OF THE MONTH
“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”