PwC's Employee Financial Wellness Survey 2017 afslørede, at 40 % af de 1600 adspurgte medarbejdere kun havde 50.000 USD opsparet til pensionering.
Mens 72 % af de adspurgte Boomers har 300.000 USD eller mindre til pensionering, trækker 30 % af Millennial- og Gen X-medarbejdere penge fra deres pensionsordninger for blot at betale for udgifter.
Mange mennesker kæmper for at spare penge til deres fremtid, nogle er ikke engang begyndt.
Hvis du endnu ikke har en pensionsopsparing, skal du vide, at det aldrig er for sent at starte. Jeg bad 49 eksperter i privatøkonomi om at dele deres pensionsordninger og investeringsstrategier. Så hvis du er overvældet af alle mulighederne, formlerne og pensionsplanlægningsstrategierne derude, kan denne artikel hjælpe dig.
Baseret på svarene var det gennemsnitlige pensionsmål fra de eksperter, vi interviewede, 2,3 millioner USD , eksklusive tre personer, der foretrak ikke at give et samlet antal. Den laveste var $400.000 , mens den højeste var 12 millioner USD .
Pensioneringsplaner og konservative investeringsideer fra 48 eksperter i privatøkonomi
Adam er strategi- og planlægningsanalytiker og uddannet finansanalytiker. Han skriver om personlig økonomi, iværksætteri og andre personlige forbedringsemner. Jeg kan godt lide hans indlæg om fejlslutningen i Sunk Cost, da det præsenterer en logisk måde at tænke på store køb, du senere fortryder.
Hvor mange penge skal du bruge for at gå på pension, og hvorfor?
"Jeg ville sige mit daglige job op, hvis nogen gav mig en check på 5 millioner dollars. Jeg bygger det meste af min formue gennem virksomheder i stedet for mit daglige arbejde. Så hvis min ejerandel når $5 millioner, vil det bare anspore mig til at se, om jeg kan nå op på $10 millioner eller mere."
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
Adam siger, at folk ikke bør se på investeringsinstrumenter og kategorisere dem som risikable eller ikke risikable. I stedet foreslår han, at du overvejer, hvor meget du kan allokere pr. aktivklasse for at mindske din risikoeksponering.
“De fleste større aktivklasser, såsom aktier, obligationer, fast ejendom og råvarer, kan alle have en plads i din portefølje. Du kan styre risiciene ved at allokere penge til hver mulighed, alt efter hvor risikabelt det er for dig.”
Hvis du virkelig er risikovillig, foreslår Adam en grundlæggende indeksfond, der dækker det amerikanske eller globale aktie- og obligationsmarked.
Andrew startede sin økonomiske rejse som en fortabt og frustreret medarbejder. Han havde en god løn, men han vidste ikke, hvad han ellers skulle stille op med sine penge udover at købe nye ting. Fordi han ikke ønskede at være en 9 til 5 slave, lærte han at kontrollere sin økonomi ved at prøve forskellige budgetter og investeringsmuligheder. Han er nu gældfri og godt på vej mod økonomisk frihed.
Hvor mange penge skal du bruge for at gå på pension, og hvorfor?
Andrew oplyste ikke et samlet pensionstal, fordi han forsøger at tjene sin pensionsindkomst gennem udbytte. Det samlede beløb vil afhænge af det udbytte, han tjener over tid. Men han leverede et årligt indkomstmål.
"Jeg har brug for 50.000 USD hjem i forudsigelig indkomst for at føle mig godt tilpas i pension. Jeg vil stadig arbejde, når jeg har dette beløb, men jeg betragter dette tal som en base for en behagelig livsstil.”
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Hvis du ikke vil tabe penge, er det at gå med en cd eller en højrenteopsparingskonto det tætteste på 'ingen risiko', jeg kan tænke på."
Han advarede også investorer mod frygt for risiko.
"At tabe penge stinker, misforstå mig ikke. Men uden nogen risiko betyder det, at du går glip af større gevinster. Alt andet indebærer en form for risiko; det afhænger bare af din appetit på det.”
Bo er fastboende læge og personlig økonomientusiast, der elsker at skrive om økonomiske emner, der er relevante for unge læger som ham selv. Han skriver også om studielån, investering og lånestyring i Future Proof Detour-sektionen på sin blog.
Hvor meget har du brug for til pensionering og hvorfor?
"Mit mål er $5 millioner i dagens dollars. Det vil give mig en årlig indkomst på $200.000 ved at bruge 4%-reglen. Men jeg er temmelig sparsommelig, så jeg kan sandsynligvis leve af 3 % tilbagetrækningsrate eller $150.000 årligt.”
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Hvis du ikke kan tolerere nogen risiko, så sæt dine penge på en FDIC-forsikret højafkast-opsparingskonto eller CD."
Men med ordentlig økonomisk uddannelse mener Bo, at folk kan vælge en optimal investeringsmulighed, der tager højde for deres risikotolerance.
Bob er en tusindårig sparsommelig, investor, fotograf og udendørsentusiast baseret i Vancouver. Siden han startede sin rejse til økonomisk uafhængighed i 2011, har han samlet en udbytteportefølje, der betaler over 1000 USD om måneden.
Hvor meget har du brug for til pensionering og hvorfor?
"Vores skøn er, at vi skal bruge omkring 800.000 USD på vores investeringskonto for at gå på pension i begyndelsen af 40'erne."
Dette forudsætter, at deres kerneudgifter (bolig, forsikring, mad, gas osv.) er $32.000 om året, og deres samlede udgifter inklusive donationer, spisning og ferier er omkring $48.000 om året. Bob planlægger også at bruge et par år af sin pension på at bo i Taiwan eller Danmark sammen med sin kone.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Det afhænger af, hvor meget tid du har før pensionering. Hvis du har mere end 20 år, vil jeg vise dig den langsigtede aktiemarkedsudvikling og forklare, hvordan aktieværdierne stiger på lang sigt. Når du har forstået dette, vil jeg anbefale dig at købe indeks-ETF'er om bord på markeder som det canadiske indeks, det amerikanske indeks eller det internationale markedsindeks."
Bob understregede også vigtigheden af at holde fast i din strategi. At skifte frem og tilbage vil koste dig mange penge.
Brad hjælper folk med at lave en plan for at komme ud af gælden, betale for college eller leve en behagelig pension. Han giver også personlig økonomicoaching på sin blog.
Hvor meget har du brug for til pensionering og hvorfor?
“Jeg ved præcis, hvor meget jeg har brug for at gå på pension, for jeg ramte det tal og gik på tidligt pension. Mit magiske tal for pensionering var $2,5 millioner.”
Brad er en ivrig budgetmand, så han har et godt greb om sit forbrug og sine pengestrømme. Han fulgte heller ikke den populære 4 %-regel.
Han forklarer, "Baseret på undersøgelser af historiske afkast besluttede jeg, at en tilbagetrækningsprocent på 4% var for risikabelt for en, der ønsker at gå på førtidspension. En tilbagetrækningsrate på 4 % har en god chance for at vare 30 år ifølge analyse, men dens chancer for at vare 50 år er ikke gode nok for mig."
Den tilbagetrækningssats, han satte, er 3,5 %. Ifølge hans beregninger har hans pensionskasser en chance på 83 % for at holde, indtil han er 107. Og den sandsynlighed vil stige, når han begynder at gøre krav på sine sociale ydelser.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“En konservativ, men stadig velfungerende porteføljemulighed er en fordeling af 15 % US Large Cap-aktier, 15 % US Small Cap-aktier, 30 % internationale aktier og 40 % US Treasuries. Back-tests viser, at afkast vil være tæt på S&P 500-indekset i det lange løb, men volatiliteten vil være en tredjedel lavere."
Brad tilføjer:"Dette porteføljemix ville være faldet 18 % under den store depression i 2008-2009, mod et fald på 37 % for S&P 500-indekset."
Brian er medstifter og Lead Real Estate og Personal Finance blogger hos Spark Rental. Han har 15 lejeboliger og tilbyder også gratis videotræning om at tjene passiv indkomst gennem udlejning på SnapLandlord.com
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg sigter efter at have $750.000 til pension. Fordi jeg ejer flere udlejningsejendomme, ville omkring 500.000 $ af mine pensionspenge gå til at betale af på mine realkreditlån. Men herefter ville lejeindtægten være nok til, at jeg kunne leve videre på ubestemt tid. Jeg har også omkring $250.000 i aktier, udelukkende til diversificering og risikostyring."
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Ejendomsinvesteringer kan være ekstremt lavrisiko, men som enhver anden form for investering kan folk uden erfaring miste mange penge."
Brian er hurtig til at indrømme, at han underviser i ejendomsinvesteringer til passiv indkomst, så han er delvist indstillet på det.
Han fortsætter, "Lejeejendomme kan købes med meget forudsigelige afkast, for folk, der ved, hvordan de skal beregne dem. Det er ikke svært at gøre, det er at finde gode ejendomshandler, der tager tid og arbejde, i modsætning til indeksfonde, der ikke tager noget arbejde, men som ikke giver dig kontrol over afkast."
Fast ejendom kan ifølge Brian være en konservativ investering, men det hele afhænger af investorens viden og vilje til at lære.
Carlos, alias “Homie G” er lærer, investor, succescoach og personlig finansblogger hos CommonCoreMoney.com. Han har været med på Money magazine og San Diego Union Tribune. Du kan også følge ham på Twitter på @COsvaGomez.
Hvor meget har du brug for til pensionering og hvorfor?
"Min kone, Jessica, og jeg har brug for i alt $4,45 millioner i samlede aktiver for at gå på pension i en alder af 65 og leve komfortabelt i 30 år."
Carlos' forklaring af, hvordan han kom frem til dette tal, er detaljeret og fokuserer på hans nuværende og fremtidige udgifter.
“Vi bruger 37.000 USD om året på realkreditlån, ejendomsskatter, forsikringer og vedligeholdelse. Vi bruger omkring $29.000 om året på alle resterende leveomkostninger. Derfor bruger vi omkring $66.000 om året på at opretholde vores levestandard.”
Carlos ved, at deres nuværende årlige udgifter vil ændre sig efter pensionering. Hans realkreditlån vil allerede være betalt inden da, men han forventer, at omkostningerne til vedligeholdelse af ejendommen, skatter og forsikringsomkostninger vil stige over tid.
“Ved at bruge en årlig inflationsrate på 2,5 %, anslår jeg, at mine boligudgifter vil være omkring 17.000 USD, når jeg går på pension i 2042. De 29.000 USD i leveomkostninger vil igen være omkring 54.000 USD med en inflation på 2,5 %. Det betyder, at vi skal bruge 71.000 $ i 2042 for at opretholde vores nuværende levestandard."
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Jeg vil anbefale indskudsbevis (CD) stiger til en ven, der er bange for investeringsrisiko. Da Fed siger, at de vil hæve renten to gange i år, ville jeg gå med en stige af cd'er med kortere løbetid, fra 6 måneder til 30 måneder."
Ja, udbyttet er mindre, men cd'er er FDIC-forsikret op til $250.000 pr. person pr. bank, i modsætning til aktier og andre papiraktiver.
Cat er en personlig økonomiekspert og en inspiration til at arbejde hjemme hos mødre overalt. Hun befandt sig engang i gæld uden jobudsigter på en fjerntliggende caribisk ø, men hendes vedholdenhed hjalp hende med at finde en måde at tjene penge online som freelancerskribent.
Hvor meget har du brug for til pensionering og hvorfor?
Catherines samlede pensionsmål er et interval i stedet for et bestemt tal, men hendes årlige mål er specifikt.
"Jeg sigter personligt efter et tal mellem $1 million til $3 millioner, så jeg kan tjene en årlig indkomst på $100.000 eller mere. Det vil give mig mulighed for at rejse, dyrke mine hobbyer og hjælpe mine fremtidige børnebørn med deres uddannelse.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Jeg investerer i lavprisinvesteringsfonde, så det er det, jeg vil anbefale til alle, der er bange for risiko. Se efter en simpel S&P 500-indeksfond, og tal med en betroet finansiel rådgiver, hvis du ikke er sikker på dine muligheder."
Tchad er en erfaren ejendomsinvestor, far til to børn, rejsende og skribent for andre personlige finanswebsteder (inklusive InvestmentZen!). Hans hjemmeside handler mest om ejendomsinvestering, men han skriver også om virksomhedsledelse og personlig udvikling.
Hvor meget har du brug for til pensionering og hvorfor?
“For en simpel pensionering har jeg brug for mindst 3000 USD om måneden eller 36.000 USD om året. Dette dækker de grundlæggende udgifter for min lille familie på fire.
Denne indkomst kan oversættes til forskellige tal afhængigt af hvor du investerer. Men en egenkapital på 600.000 USD investeret i lejeejendomme kan nemt producere denne månedlige indkomst, forudsat at jeg køber ejendomme med et investeringsafkast på 6 %."
Chad understreger også, at fordi investeringerne er i fast ejendom, behøver han ikke at bekymre sig om at afskrive kapital ligesom andre papiraktiver. Hvis han køber kvalitetsejendomme i gode beliggenheder, vil lejepriserne sandsynligvis følge med inflationen.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Jeg anbefaler en lille portefølje på fem til 10 fuldt betalte og overskuelige lejeejendomme."
Jeg tror, han er en af de få, der nævner lejeejendomme som en konservativ investeringsmulighed, så det er interessant at læse hans begrundelse for dette.
“De gældfrie ejendomme vil give en ensartet indkomst. Og fordi de er fuldt betalte, behøver du ikke bekymre dig om endnu en ejendomsboble eller depression. Du kan bare reducere lejepriserne. Det lille antal ejendomme gør det også rimeligt at administrere.”
Læs Carsons blog for mere information om denne strategi.
Chris er en enlig far til seks børn, der lever løn til lønseddel. Han skrev My Retirement Planner for at dokumentere og finde ud af sine økonomiske planer og fremtid.
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg har brug for 500.000 $ i pension. Min plan er at gå på pension som 65-årig og en forventet levetid på 85 år, hvilket betyder, at jeg har brug for 20 års indkomst. Multiplicer denne varighed til min årlige målindkomst på $25.000, og du får $500.000."
Sams beregning omfatter allerede sociale sikringsydelser, og han håber, at det kan opveje halvdelen af hans ønskede årlige indkomst på $25.000. Han vil udgøre resten af de $25.000 gennem et deltidsjob, investeringer og hans opsparing.
Han ved også, at 25.000 $ ikke er meget, men han har planer om at flytte et billigere sted.
Han fortsætter, “Målet på $25.000 inkluderer husleje, mad og sundhedsforsikring, men det forudsætter, at jeg ender med at flytte til et varmere klima i sydøst. Jeg undersøgte også livsstilen for fritidskøretøjer og fandt eksempler på, at folk lever for mindre.”
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“En ETF eller Exchange Traded Fund er nok det mest populære konservative investeringsvalg i disse dage. ETF'er gør det nemt at deltage på aktiemarkedet uden selv at vælge aktier.”
Craig Stephens driver bloggen Retire Before Dad, hvor han dokumenterer sit mål om at gå på pension før sin far, og de erfaringer, han lærte om rejser, investering, førtidspension og personlig økonomi.
Hvor meget har du brug for til pensionering og hvorfor?
“Jeg forventer at have brug for omkring $1,5 til $2 millioner og at være fuldstændig gældfri for at finansiere vores ønskede pensionslivsstil. Dette interval tegner sig for en kombination af faktorer, herunder forventede udgifter, den sikre tilbagetrækningsrate på 4 %, inflation og en sund buffer.”
Craig sagde også, at budgettet inkluderer undervisning i statens universiteter for hans tre børn.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“En konservativ investeringsmulighed, jeg kan anbefale, er crowdfunding-platformen for fast ejendom, Fundrise. Ejendomscrowdfunding er relativt nyt, men det giver almindelige investorer adgang til diversificerede ejendomsinvesteringer af høj kvalitet gennem deres eREIT (Real Estate Investment Trust) produkter."
Minimumsinvesteringen hos Fundrise er $1000, mens afkastet varierer fra 8% til 12%.
ESI Money er en blog rettet mod at opnå økonomisk uafhængighed gennem at tjene, spare og investere. Forfatteren er en leder, der trak sig uventet på pension som 52-årig, efter at tingene ikke fungerede på hans job, og han indså, at han allerede har nok til at gå på pension, selvom det, han havde, var langt mindre end hans oprindelige pensionsmål.
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg har altid tænkt, at jeg har brug for 4 millioner dollars eller 100.000 dollars om året for at gå på pension."
Men efter at have overvejet sin opsparing, forskellige indkomstkilder og skøn over leveomkostninger besluttede han at gå på pension som 52-årig. Han tror nu på, at mange mennesker kan gå på pension for 1 million dollars eller mindre.
Her er hans beregning fra hans blog:
“Jeg har nuværende likvide aktiver lidt over $600.000. Jeg kan tjene omkring $60.000 om året konservativt - $50.000 fra fast ejendom og $10.000 fra P2P-investeringer. På det høje estimat kunne jeg indbringe tættere på $70.000 eller mere.”
Det betyder, at han kun behøver at trække 40.000 USD om året fra sine opsparede midler på 600.000 USD for at nå sin målpensionsindkomst på 100.000 USD om året.
ESI fortsætter, “Ved $40.000 om året ville de $600.000 holde i 15 år, hvilket er mere end nok tid til at få resten af mine aktiver. Dette scenarie antager, at jeg ikke får nogen indtægt fra nogen anden kilde, hvilket er usandsynligt. Jeg vil i det mindste gerne undervise lidt, og min kone vil måske også arbejde.”
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Dette afhænger af for mange variabler til at svare på, såsom hvornår de får brug for pengene, deres risikotolerance og hvor meget af hele deres nettoværdi de investerer."
Daniel er medarbejder i midten af 20'erne i et online reklamefirma. Han skabte Sweating the Big Stuff for at dele de praktiske lektioner, han har lært om håndtering af penge, fra små økonomiske gevinster som at forhandle en klipning, til mere livsændrende gevinster som at forhandle en lavere husleje eller få venner ved hjælp af privatøkonomi.
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg har personligt brug for omkring $4 millioner i pension, så jeg kan leve for $160.000 om året uden at overleve min opsparing."
Daniel forklarede, at han fremskrev dette beløb ved at bruge en afkastrate på 8 % på en investering på 250.000 USD, når han er 30. Han ville have 2,5 millioner USD, når han fylder 60, og omkring 4 millioner USD, når han er 66.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Jeg anbefaler, at du overvejer en robo-rådgiver, der tager højde for din risikotolerance. Og tjek ikke din saldo for ofte."
Daniel fortsætter, “Jeg har flere venner, der gik glip af at investere og satte deres penge på en opsparingskonto i stedet for. Forestil dig, hvor meget de kunne have tjent, hvis de satte deres penge i en konservativ portefølje.”
David er en medvirkende forfatter hos Money Crashers, og forfatteren til e-bogen, "Don't Be a Mule:A down-to-earth, common-sense tilgang til at spare mere, bruge mindre og generere ekstra penge i din hverdag.”
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg planlægger at have 500.000 USD i pension, baseret på beregninger, jeg lavede ved hjælp af et par online-beregnere, og hvad jeg har brug for, hvad angår rejser, sundhedspleje og andre udgifter.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Et par konservative investeringsmuligheder for dem, der er bange for risiko, er FDIC-forsikret m et-markedskonti , cd'er og obligationer."
David arbejdede på deltid hos Merrill Lynch på college, før han arbejdede i Bank of Montreal og senere gik videre til reklame. Han hjælper nu andre med at få bedre kontrol over deres økonomi gennem sine bøger og coachingtjenester.
Hvor meget har du brug for til pensionering og hvorfor?
Ligesom de andre nævnt her, planlægger David at få alt betalt, før han går på pension.
"Jeg planlægger at have 5 millioner CAD (USD 4.0180,00 fra dagens konvertering) i udbyttebetalende investeringer, som vil tjene mig 250.000 USD ved et afkast på 5 % før skat. Det vil groft beløbe sig til $150.000 i 30 år, forudsat at inflationsraten forbliver på 3%. Jeg investerer mine penge nu og arbejder hårdt på at få mit nuværende afkast til at betale mit realkreditlån så hurtigt som jeg kan. Derefter vil jeg koncentrere mig om at investere for at nå mit mål på 5 millioner CAD på 30 år."
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Køb en lavprisudbyttebørshandlet fond (ETF). Det vil have aktier af virksomheder med en historie med solide afkast, som Coca Cola, Disney og Microsoft."
David skrev en kontroversiel og godt modtaget artikel om pensionering, “ Hvis du vil gå på pension, så stop med at bruge penge på smarte frokoster og invester ". Læs den for at lære, hvordan du kan pensionere en millionær som 40-årig, hvis du bare springer din smarte kaffe over og sparer dine frokostpenge hver dag.
Hvor meget har du brug for til pensionering og hvorfor?
“Jeg har brug for mindst 2 millioner USD investeret i et afbetalt hus for at føle mig godt tilpas ved at gå på pension. Med 2 millioner USD i et aggressivt investeringsmix (60 % aktier, 40 % obligationer) kunne jeg tjene 3 % til 4 % gennemsnitligt afkast, hvilket giver mig en årlig indkomst på 60.000 til 80.000 USD.”
David sagde også, at det at have 2 millioner dollars i pension kan hjælpe ham med at klare længerevarende markedsnedgange. Selvom hans porteføljes værdi faldt til $1 million, kan han leve for $40.000 om året.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Invester i sikrere aktiver, såsom obligationer. Jeg vil anbefale AGG, BlackRock iShares EFT, der investerer i amerikanske obligationer af investeringsgrad. Det betaler mere end statsobligationer, men udgør mindre risiko sammenlignet med aktier. Du kan også få omkring 2 % i udbytte udloddet i løbet af et år.”
Eric skriver om at øge din indkomst, investeringer og nyde livet, mens du bruger ansvarligt, og han er også vært for en podcast om samme emne. Du kan også deltage i hans 7-dages kursus om at øge din lønsomhed.
Hvor meget har du brug for til pensionering og hvorfor?
“Mit store tal er $4 millioner. Selvom dette er mere, end jeg behøver for at gå på pension, vil det lade mig trække mig komfortabelt tilbage i enhver alder. Hvis jeg kan tjene 5 % afkast på et redeæg på 4 millioner dollars, vil jeg få 200.000 USD i årlig indkomst.”
Eric indrømmer, at hans pensionsmål er mere end det, han tjener i dag, men han sigter stadig efter det mål, fordi han ved, at indkomstniveauet vil beskytte ham mod inflation.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
"Sæt 90 af dine penge i en lavpris S&P 500 indeksfond, og de resterende 10 % i en lavpris kortfristet statsobligationsfond."
Dette er baseret på Warren Buffets 90/10-regel for konservative investeringer. Bare fortsæt med at spare dine penge og allokere dem på den måde, og du vil være på vej mod en fantastisk pension.
Glenn er en investor, familiefar og iværksætter, der driver flere deltidsvirksomheder for at supplere sin indkomst og leve et fleksibelt liv. Han er også ekspert i deleøkonomi. Hvis du hader budgettering, kan du måske nyde hans alternative strategi til at holde et budget.
Hvor meget har du brug for til pensionering og hvorfor?
“Mit personlige magiske pensionstal er $1.050.000, som jeg kom frem til ved at summere mine månedlige udgifter og gange dem med 25.
Min familie og jeg bruger omkring 3.500 USD om måneden på alt, så hvis jeg ganger det med 12 i et år, så gange produktet til 25, hvilket vil give mig 1.050.000 USD.”
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Jeg investerer personligt i fast ejendom. Hvis det gøres med ordentlig uddannelse, er fast ejendom den mest konservative investeringsmulighed, du kan have.”
Men hvis du foretrækker noget lidt mere passivt eller ikke kræver nogen fagekspertise, anbefaler Glenn,
"Få en robo-rådgivertjeneste som WealthSimple eller Betterment, så de kan automatisere din pensionsopsparing, og du behøver ikke tænke på det."
Grace er en midaldrende kvinde, der skriver om udfordringerne ved at spare op til pension og minimere gæld sent i livet, med en middelklasseindkomst.
Hvor meget har du brug for til pensionering og hvorfor?
Graces pensionsmidler blev næsten udslettet på grund af den sidste recession, men hun stoppede ikke med at finansiere den. Hun tror, at de nu er næsten helt restituerede.
"På dette tidspunkt har jeg næsten nået mit (pensionerings)mål på $400.000. Ifølge prognoser er jeg faktisk på mål at have $450.000 i en alder af 69."
Du tror måske, at dette er i den lave ende af skalaen, men husk på, at Grace allerede er ved at gå på pension, og hun planlægger at fortsætte med at arbejde indtil 71 for at støtte sit barnebarns gymnasieuddannelse.
Jacob Lumby er Content Director og en af de trioer, der driver Cash Cow Couple. Sammen med hans kone, Vanessa, lærer de andre ægtepar, hvordan de kan spare penge, betale gæld og opbygge en stabil økonomisk fremtid.
Hvor meget har du brug for til pensionering og hvorfor?
"Jeg ville føle mig tryg ved at trække mig tilbage med $1 million i tilgængelige aktiver. Ved at bruge 3% som en konservativ tilbagetrækningssats vil en portefølje på 1 million dollar producere 30.000 dollars om året. Det beløb vil være nok til at dække alle vores udgifter på grund af vores minimalistisk livsstil ."
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Risiko og belønning er uadskillelige for investorer. Lavrisikoinvesteringer giver ikke store potentielle afkast. Men der er muligheder for folk, der er mindre fortrolige med investeringsrisici.
Fast ejendom er mere stabilt sammenlignet med aktier, og firmaer som Fundrise gør det nemt at investere i kommercielle ejendomstilbud uden for høje gebyrer.”
Jacob foreslog også kortfristede obligationsfonde som en konservativ investeringsmulighed for investorer, der mener, at fast ejendom ikke er noget for dem.
James er en akutlæge, der blev træt af de løgne og rip offs, han oplevede, mens han beskæftigede sig med finansprofessionelle. Han startede White Coat Investor for at hjælpe læger og andre fagfolk med deres ‘ andet job ,' som er at styre deres egen indkomst og investeringer.
Hvor meget har du brug for til pensionering og hvorfor?
“Vi bruger omkring $150.000 om året, men med skatter og velgørende bidrag kan det være tættere på $200.000. Hvis du ganger det med 25, får du mit pensionsmål på 5 millioner dollars.
Mange højindkomstprofessionelle, især de gode opsparere, indser ikke, at de ikke behøver at erstatte engang 70 % af deres førtidspensioneringsindkomst for at opretholde deres levestandard."
I denne artikel forklarede James, at højindkomster beskattes mere, mens de stadig arbejder, men vil blive beskattet væsentligt mindre efter pensionering. Mindre skat betyder en stigning i nettoindkomsten. Han nævnte også andre årsager, der er specifikke for læger.
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
“Investeringer med lav risiko kræver en opsparingsrate, der er langt højere, end hvad de fleste mennesker er villige til. Derfor ville det være en bjørnetjeneste for mig at anbefale en "sikker investering"-mulighed uden at informere folk om et mere risikabelt alternativ - at tjene for lavt afkast til at nå deres økonomiske mål."
Han tror på det, Phil Demuth sagde,
“Du bør investere på den måde, der har størst udsigt til at opfylde dine investeringsmål. Det kan betyde, at du tager mere eller mindre risiko, end du foretrækker.
Hvis du er en følsom sjæl, der ikke kan klare papirtab, er løsningen at få fat, ikke at investere 'sikkert', hvis det låser sig i at løbe tør for penge, når du er gammel."
Jamie er mor til fem børn, der skriver om deres families rejse til at betale deres kreditkortgæld. Hun skriver også om at spare penge, komme ud af gælden, sparsomt liv og sparsommelige opskrifter.
Hvor meget har du brug for til pensionering og hvorfor?
Jamies mand blev informeret om, at de ville have brug for mindst 75.000 $ om året under pensionering, hvilket er mere end to millioner dollars.
Da Jamie indså, at det tal er for meget og en smule uden for rækkevidde, brugte Jamie FIRECalc til at hjælpe hende med at bestemme, hvor meget de skal gå på pension baseret på tidligere markedsresultater.
"Vores magiske tal er $1,1 millioner plus al vores nuværende gæld og realkreditlån, fordi vi ikke ønsker at trække os tilbage med gæld. Det er et tal, vi nemt kan nå, hvis vi investerer en del af hver lønseddel"
Hvilken konservativ investeringsmulighed kan du anbefale til en ven, der er bange for risiko?
Jamie tror, at folk er skræmt til at investere deres penge på grund af, hvad de ser i film. Timing af markedet, køb højt og sælg lavt – alt det der er overvældende for en nybegynder investor.
"Du skal ikke bekymre dig om timing af nogen markeder. Find investeringsforeninger med en solid track record, og dump penge i dem regelmæssigt.”
Ja, markedet er til tider dårligt, men hun tilføjer, "Hvis du har et årti eller mere til pensionering, er oddsene, at du kommer foran."
Jamila er en Certified Financial Education Instructor (CFEI), blogger, podcastvært og pengecoach. Hun hjælper andre med at få klarhed over penge og skabe en handlingsplan for at nå deres mål.
Hvor meget har du brug for til pensionering og hvorfor?
“In order for me to retire in six years (at age 40), my husband and I would like to have:
Jamila’s plans to retire in six years might seem ambitious to you, but she’s had years to prepare and she started investing early. She purchased her first real estate property at age 22.
“My early retirement plans assumes my husband would still be working. We’d live off his take-home income and only tap into our investments as necessary. If we can grow the $1 million at a conservative 6% annual return without withdrawing from it until my husband retires in 15 years, that amount would grow to about $2.4 million.”
She also explained that the $2.4 million, along with her husband’s pension and the income from their investment properties would generate enough income for them to retire comfortably.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Invest in low-cost index funds. This investment option gives you a sampling of the entire stock market, so you can hedge against some fluctuation in more risky investments.”
Jim is the Executive Director of Indexed Annuity Leadership Council (IALC) and former insurance commissioner of North Dakota. The IALC provides comprehensive and accurate information about the use of indexed annuities.
How much do you need for retirement and why?
“With healthcare costs likely to exceed more than $250,000, I, like many baby boomers, will need more than $1 million to retire comfortably.”
Like the other financial experts in this article, Jim also considered his cost of living, and dreams of travel when he calculated his retirement goals. He also used retirement calculators to make the process easier.
He continues, “I like the calculator at FIAinsights.org because it allows you to hone in on specific aspects of retirement planning. You can get a retirement number or plan that’s specific to your situation after answering a few questions.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“The best approach is to balance your portfolio. Look into a fixed indexed annuity , which provides increased sustainability while mitigating external risks to your investment. The market may swing, but your principle investment will be protected.”
The fixed indexed annuity he recommended also provides a guaranteed lifetime income, so there’s no risk of outliving your earnings. Be warned though, investments like this are usually expensive.
Jon started investing in stocks when he was 18. But that didn’t mean he was free from financial struggles. He lost $25,000 during the housing bubble and once owed $10,000 in credit card debt.
His portfolio has grown over $700,000, and he now shares the strategies and lessons he used to get out of debt and grow a sizable portfolio.
How much do you need for retirement and why?
Jon and his wife want to retire early and live up to age 95, which means they need to save a lot of money for a long retirement.
“Using a Monte Carlo simulator , we came up with a $3 million retirement goal that already factors in our savings and retirement expenses. But we didn’t include Social Security because we’re not sure if it will still be around by the time we retire.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Invest in a balanced mutual fund that puts 60% of your money into stocks and the remaining 40% into bonds.”
A high bond allocation (40%) protects you from stock market dips. But you won’t enjoy market surges either. If your goal is consistency and stability, this is a sensible strategy.
Jonathan is a Chartered Financial Analyst, he’s also a data analyst and author at NerdWallet. He writes articles that help readers make sense of the current economy and how it affects regular investors.
How much do you need for retirement and why?
“The traditional rule of thumb is to replace 80% of your income, but I’m planning to replace 100% of my income for two reasons:
Saving 80% of your income is hard enough, so if you aim to save higher, you’re likely to save more.
Transitioning into retirement is easier if you save more when you’re still working”
He also explained how saving more of your annual income will make your retirement transition easier.
“If you only save 10% of your annual income, you’ll be used to spending 90% of your income during your active years. But if you save 20% of your income, you’ll be used to living off 80% of your salary.”
Saving more means you’re more likely to hit your retirement goal, and you’ll be more adjusted to the decreased spending during retirement.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“For a millennial like me, the definition of risk is different compared to somebody closer to retirement. For people my age, the bigger risk isn’t investing in conservative investment options, it’s NOT saving enough.
It’s risky to invest too much in bonds or other low risk assets, because those equal to lower returns.”
Kalen is a bibliophile and active duty airmen, who used to be $24,000 in debt before he started learning about personal finance. He now writes budgeting and investing guides to help others create healthy money habits.
How much do you need for retirement and why?
“I need $2 million to produce an annual retirement income of $60,000 assuming a 6% gain. That’s a reasonable expectation on a safe investment, such as a bond.”
Kalen thinks $2 million is more than enough, especially after getting a military retirement benefit and their kids moving out by the time they retire.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“I recommend index funds to everyone, regardless of their risk level. There are plenty of conservative index funds, too. But if you can’t stomach the stock market, investing in real estate is the way to go.”
Lance is a licensed CPA who writes about spending smarter, earning more, and investing money. He and his wife also paid off more than $80,000 in student loans in 3 years.
How much do you need for retirement and why?
Lance says he and his wife need $1.4 million in today’s dollars to retire. Here’s how he came up with that number.
“Our target is $60,000 per year in retirement income. We also included a conservative estimate of $1,500 per month in Social Security income in today’s dollars, even after future changes are made, which resulted to a need of $42,000 per year in other income. We multiplied that number by 33.33 to get the total amount we need based on a more conservative 3% withdrawal rate.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
Lance’s conservative option isn’t an investment per se, but the savings are worth it.
“If I had a friend scared of risk, I’d recommend they pay their mortgage down. The rate of return is guaranteed, because you’ll no longer be paying interest on the additional principal you’ve paid off.”
Lauren admitted this was a tough question for her, because she just graduated three years ago. But she’s already invested part of her salary early, so that puts her ahead of her peers. Lauren’s logical calculation about her retirement target is also a good starting point for younger readers.
How much do you need for retirement and why?
First, she considered how long her retirement income should last and whether or not she’ll be working during retirement.
“Given the average life expectancy of a Canadian woman born in the early ‘90s, I could be kicking until I’m 80. But based on my workaholic tendencies, I might still be working after I retire.”
Then she listed her target retirement savings:
“I’ve already started saving for retirement through my company pension, and RRSP, TFSA, and Self-Directed RSP through my bank. I plan to save about 10% of my income during my 20’s and 15% to 20% starting in my 30’s.
That said, the ballpark number I’m targeting is between $1.5 to 2 million dollars with a return of 4% to 6% through a safe portfolio equally split into GICs and Canadian Bank stocks”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“As a Canadian investor also scared of risk, I would suggest they build a portfolio of 50% GICs and 50% Canadian Bank stocks.
I’ve only been buying and selling stocks for 5 years, but I’ve seen relatives retire comfortably and early because of their investments in high dividend stocks.”
Maria founded The Money Principle to teach people with financial problems how to build sustainable wealth. Even with a business school degree, she racked up $160,000 in debt last 2009 but she paid it all off in 2013. The Money Principle is a collection of the lessons she’s learned after paying her debt and her unique strategy to building a sizable investment portfolio.
How much do you need for retirement and why?
“I need about 1.5 million GBP (1,971,270 USD as of today’s conversion) to retire. I came up with this number using the assumption that I will retire at 58—not too far in the future for me—and that my annual spending is 40,000 GBP.”
Maria used the retirement calculator on her website, which took into account the inflation rate, her age, and possible investment yield. She also predicts the 1.5 million GBP will sustain her until she’s 92.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“I recommend one of the many digital wealth managers available, like Betterment, and Scalable Capital . These services help people cope with their risk aversion by allowing them to specify the risk they’re comfortable with.”
Robo-advisors also provide information about an investment vehicle’s historical returns.
Matt is the CEO and Portfolio Manager of Wela, a financial planning software that provides users personalized financial advice and a host of budgeting and financial tracking tools. Check out their free e-book ‘Economic Shutdown:30 Day Financial Cleanse.’
How much do you need for retirement and why?
“I need to save $2.2 million to retire. I based this number on my current expenses plus the inflation rate. Then I deducted my monthly mortgage and the cost of raising kids to that number.
While Matt doesn’t have kids yet, he already plans not to retire until his kids are independent and all his debts are paid off.
After calculating his monthly expenses, Matt came up with an estimate of how to generate his monthly expenses based on several investments. He adds,
“I determined how much of a nest egg I need to earn via the dividend rate of my stocks, the interest rate I earn on bonds, and the distribution rate I get from other investments, like real estate.”
His long term goal is to earn enough not to touch the principal funds during retirement. He also didn’t account for social security pension, preferring to leave that as a buffer in case the market changes.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Buy short-term bonds to start getting comfortable with investing. Although bonds won’t provide huge financial gains, and they could be affected by inflation and low yields, this will help anyone learn the ropes of investing.”
Matt also suggested getting an ETF from a specific industry, preferably one with companies you are familiar with, once you get comfortable in investing.
Michael, aka Mr. Fortunate Investor, is an entrepreneur and former manager in the financial services industry. He believes in building long term wealth by first saving to invest and then later on investing to save money.
How much do you need for retirement and why?
“I need at least $5 million in investable assets, which means non-house and non-tangible property.”
Michael also explained that having $5 million in investable money is considered to be a high net worth mark for financial money managers.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“A conservative investment portfolio comprised of 60% fixed income, 35% equity investment or stocks, and 5% in a high yield savings account (cash equivalent).”
Mike is the CEO of Born to Sell, but before that he worked in investment banking, venture capital, and software engineering.
How much do you need for retirement and why?
“My retirement goal is $2 million because I expect to earn an 8% annual income through a combination of dividends and covered call writing”
But he’s not going to use the whole 8% for retirement. Mike adds, “I will take out 5% a year and use the remaining 3% to pay withdrawal taxes or keep pace with inflation.”
If you’re curious about covered call writing, Investopedia defines it as the strategy of giving a buyer the option to buy your stock shares at a pre-determined price before the option’s expiration date.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Buy a diversified portfolio of blue chip, large capital, and dividend paying stocks. Then leverage them for monthly income using covered calls.”
Miranda is a freelance financial writer and speaker. She conducts workshops on personal finance and investing.
How much do you need for retirement and why?
“I think of it in terms of monthly income instead of coming up with a set number for retirement. After looking at my expenses, potential expenses, and accounting for inflation, I will need about $4,500 a month during retirement.”
Miranda knows her healthcare costs will likely increase during retirement, and that she’d have to cut back on her writing work at some point.
“If I go with $4,500 a month and assume the 4% rule, I would need to save up to $1.35 million whenever I decide to stop working.”
But she admits she’s already living a semi-retirement lifestyle, because she works from home and travels. She added,
“I’m not on a traditional retirement track, because I have businesses and other investments that supplement my writing income.”
Neil is the CEO of Maxwell Wealth Planning and a former Financial Education Counselor at Pricewaterhouse Coopers.
How much do you need for retirement and why?
“I think I need about $4 million to $5 million in today’s dollars to retire comfortably and not worry about money again.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
Neil is a Certified Financial Professional so he didn’t want to suggest or recommend a particular investment option. Instead he wanted to inform readers about the different types of risk in investing.
“There is more than one kind of risk to be afraid of. People think their portfolio going down in value is the only risk, but there are other risk factors as well.
This includes the risk of not hitting your goals, and the risk of the money in your savings account having less purchasing power in a year.”
Nicole has a Master’s in Accounting, which she uses in her quest to educate and empower women to be financially independent. She hosts workshops and speaks at conferences for women about investing, building wealth, and saving on taxes.
“I’m saving $3 million for retirement, which roughly equals to a $100,000 annual income for 30 years.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Invest 10% in a mutual fund that pays dividends and has a profitable history. You can also find a passive income stream that requires the least amount of effort, to help build your nest egg.”
Paul is a fan of day trading, specifically the Swing Trading strategy. He writes about day trading basics, resources, and strategies at his website, Foxy Trades.
How much do you need for retirement and why?
“I personally need $600,000 to retire plus a $100,000 safety buffer if I outlive my retirement funds for two to four years. That’s based on how much I would need to earn $5000 a month on a 10% average annual return.”
Paul admits he only needs $2000 a month, but he’s aiming for the extra $3000 to maintain a good lifestyle that includes some hobbies and traveling.
What conservative investment option can you recommend to a friend who’s afraid of risk?
He suggests an investment strategy similar to the conservative part of his portfolio,
“A mix of index funds and residential real estate, leveraged up to 50% to increase return on equity.”
Pauline created Make Money Your Way to help others earn a living on their own terms, whether it’s through entrepreneurship, freelancing, real estate, or other alternative investments.
How much do you need for retirement and why?
“I spend less than $1,500 on a regular month, but I feel safer aiming for around $3,000. Using a 4% safe withdrawal rate and about 25 years of retirement, I will need about $900,000 for retirement.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Stick to index funds, max out your 401K and Roth IRA. Take advantage of company matching. You should be fine if you have a few decades before you retire.”
Phil paid of $30,000 in student loans in 1 year with a $48,000 annual salary. After that he bought his first house with cash when he was just 25 years old.
How much do you need for retirement and why?
“I project that I need $700,000 to get $42,000 at a 6% annual return.”
He thinks this amount is enough because he plans to live a debt-free lifestyle before and during retirement.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“I don’t make recommendations on investment because everyone is different, and I tend to only look at risky options.”
“I only need $750,000 for retirement to receive a $30,000 annual income, based on the 4% rule. My passive income from real estate, dividend stocks, websites and other online businesses will also serve as my income buffer during retirement.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“A conservative investment option for anyone afraid of risk is a mix between index funds and bond funds with a 70:30 allocation to minimize risk. The bonds minimize your exposure to the volatile stock market.”
Sam retired in 2012, just a few years after the Great Depression that rocked even his solid portfolio. He started Financial Samurai in 2009 to help himself and others learn more about investing, real estate, retirement, and other topics related to money’s mysteries.
Thinking about retiring early? It’s not all it’s cracked up to be. Read his article about the dark side of early retirement first before you start planning.
How much do you need for retirement and why?
His response might be helpful to you if you’re also considering an early retirement, and if you’re living in an expensive city.
“My goal was to have $10 million for retirement, excluding the value of my primary residence. That amount will generate at least $225,000 a year in risk-free income based on today’s 10-year government bond yield.”
If you’re wondering why he needs so much, that’s because he’s living in San Francisco, one of the most expensive states in the U.S.
He continues, “It’s expensive living in San Francisco, especially when the median home price is $1.5 million and the cost of private school is between $20,000 to $50,000 a year.”
Sam admits that he could move to a less expensive state, but he likes his current goal so he has as many options as possible.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Consider CDs, treasury bonds, municipal bonds, and zero coupon municipal bonds. CDs are guaranteed to pay back your principal, plus a fixed interest. They are also FDIC insured. Treasury bonds are backed by the U.S. government, so they should pay you back as well. Municipal bonds are federal and state tax free, if you buy your state’s own municipal bonds.”
Sean is a 20-something banker and financial analyst, who started My Money Wizard after saving $25,000 at 25. Just a year after, he grew his savings to $150,000. He writes My Money Wizard to share demystify the world of personal finance and investing.
True to his word, his writing shows how he explains financial concepts by using tangible examples. His post about what he learned living on a million dollar home, and how that relates to diminishing marginal returns is both funny and enlightening.
How much do you need for retirement and why?
“I save over 60% of my take home pay and am shooting for at least a $750,000 portfolio.”
He’s well on track of that goal, considering how young he is. But he’s not planning on a traditional retirement.
Sean explains, “My goal is early retirement by age 37. Plan B is to keep working until I’m 40 and plan C is to retire a decade sooner than the ‘normal’ retirement age, at around 50”
The question now is, how can he manage such an early retirement? He has about 11 years.
“We’ll assume I never get a raise again. As I keep dumping $33,000 per year into these low risk investments, the beauty of compound interest needs just 11.86 years to snowball that pile of cash to $750,000.”
Sharon is the author of the ‘Live Cheaply, Be Happy, Grow Wealthy’ e-book, which is based on her own experience of retiring early, living frugally, and investing money. She also writes about financial fitness and retirement.
How much do you need for retirement and why?
“I set a personal goal of $1 million, because it sounded like plenty of money but still achievable. But since no one really knows how long they will live, and what inflation will be like, I strive to save as much as I can.”
Sharon adds that she also arrived at her $1 million target after using the Rule of 25, where she estimated her monthly expenses, and added it to her expected fixed income, then multiplied the difference by 12 to get a yearly estimate. And finally multiplied the number to 25 to get how much she should earn for a 25-year retirement.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“The most conservative investment option, with a guaranteed return, is the retirement of your own debt.”
Sharon’s response to this question is unique among the responders for this article, but her logic is quite sound.
She continues, “Mot consumer debt carries a higher interest rate than most investment products these days. As you whittle away at the principal, you eliminate the interest expense you would have otherwise paid.”
The less debt you have at retirement, the less money you’ll need to cover your living expenses.
She also recommended other conservative investment options, like a no-load mutual fund.
Sudipto is the Founder of One Cent at a Time, where he blogs about personal finance and productivity. He’s an advocate of taking low-interest personal loans to pay off high-interest credit card balances to escape debt faster.
How much do you need for retirement and why?
“I need at least $1 million to retire. My mortgage will be paid off by the time I retire 23 years from now. My son’s college would by fully paid, too. So I’ll have nothing else to pay for other than food, health, entertainment and travel for two people—only $24,000 in today’s money.”
Sudipto used the 4% rule on a $1 million retirement to come up with a withdrawal rate of $40,000 a year. He added,
“I didn’t factor in social security income because that’s uncertain. Any income from Social Security will just be used for more travel and charity.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“A CD ladder is the best option in my opinion. It has the least risk and it’s almost as good as annuities in terms of return. I’d also recommend investing in bonds, as it has a lower risk compared to stocks and ETFs.”
Todd is a Certified Financial Planner and Certified Investment Management Analyst. He’s the Chief Investment Officer of My Harvest Group, where he designs and executes the firm’s investment strategies.
How much do you need for retirement and why?
“I would need about $12 million to retire in today’s dollars or $25 million after inflation. I would like to maintain a cash flow of $40,000 in after taxes income a month, or $480,000 a year.
Using a 4% withdrawal rate and assuming no pensions or social security—to be on the conservative side—that comes up to $12 million ($480,000 divided by 0.04)
What conservative investment option can you recommend to a friend who’s afraid of risk?
“In today’s low interest rate environment, a fixed or variable annuity can guarantee a living and or death benefit. Although they are more expensive, they can guarantee a higher income stream during life.”
Tony is a Registered Investment Advisor who helps families and business owners with their succession planning and retirement. He’s also the author of ‘Conversations That Count:A common sense guide to finding the right advisor, growing wealth faster, and retiring earlier than ever.’
How much do you need for retirement and why?
“I need about $4000 a month after taxes in today’s dollars for retirement. I arrived at this number by subtracting expenses I won’t have during retirement from my income, such as mortgage, childcare expenses, and retirement savings.”
When asked for a sum total of how much he plans to save, Tony explained how he views retirement as a new phase in life, not just an event with a single lump sum.
He explains, “I don’t believe you can figure out a level of assets, or a specific number needed for retirement. You can figure out the income you need, and the sources of that income, but the traditional view of retirement as an event instead of a new phase of life isn’t accurate. It’s just a different inflow outflow situation.”
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Many investors need to reframe the way they think of risk. You can make 3% in something guaranteed and still lose money over the long haul after inflation.”
William is an investment banker and the editor for Doctor of Credit, a website he stared to augment the lack of in-depth articles about credit scores and other financial products. If you’re looking for a good credit card with sign-up bonuses, he has a comprehensive list worth checking out.
How much do you need for retirement and why?
“All in, I’d like to retire with about $1 million in liquid assets, not including property.”
William says this number is significantly less than if he already had children.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Low index funds such as Vanguard. This is the same approach suggested by Warren Buffet , and it’s one I strongly believe in.”
William worked as a Senior Financial Consultant for a Fortune 500 bank before he started his own independent practice as a financial adviser. He’s also the author of “The 7% Solution:Guaranteed Growth in a 0.7% World.”
How much do you need for retirement and why?
“My family and I will need $1.3 million in today’s dollars to retire in 15 years. That amount will give us an income of about $5,467 a month for 30 years. I calculated this amount using safe interest rate assumptions.
William says this amount doesn’t include their other pensions, so I think they’re excluding that amount to give them a safety buffer, and help them maintain a debt-free lifestyle.
What conservative investment option can you recommend to a friend who’s afraid of risk?
“Try different conservative investment options, such as dynamic indexed annuities and market linked certificates of deposits.”
If you’re wondering “How much should I have saved for retirement?”,
The answer is easier than you may think. It’s all about expenses, expenses, expenses !
The first question you need to ask yourself is this:
How much do I spend every year?
If you’re old-school, record all purchases in a notebook and add them up at the end of every month. If you like fancy websites and automation, use a site like Mint or Personal Capital. Both are free, wonderful tools.
Don’t forget to include a buffer. Add 10% for future maladies. You never know when your home will need a new furnace or you’ll have an unplanned medical expense.
Now that you know how much you spend every year, let’s talk about your magical retirement number.
The next question to ask yourself if you want to retire is this:
How much should I have in savings?
Luckily, there’s a simple guideline for this and it’s called the 4% Rule. The rule came from a study by William Bengen.
Bengen wanted to know what the maximum safe withdrawal rate was as a percentage of portfolio value. The study found that you can withdraw 4% of your portfolio the first year of retirement. In subsequent years, the number increases for inflation.
For example, if you have $1,000,000 saved, you may safely spend $40,000 in your first year of retirement. Another way to look at it is that you need to save 25x your annual spending for your first year of retirement.
The 4% Rule is controversial. Some think it’s too risky. Common complaints include:
All of those arguments have some degree of merit. However, don’t forget that the 4% Rule was designed to be very conservative. Data shows that in many years, retirees could have actually spent much more than 4% and been fine.
Here is what the highly respected financial planner, Michael Kitces, had to say about it:
“…by applying the 4% rule, over 2/3rds of the time the retiree finishes with more than double their wealth at the beginning of retirement, on top of a lifetime of (4% rule) spending! Half the time, wealth is nearly tripled by the end retirement, as retirees fail to spend their upside!”
I could discuss the 4% Rule and safe withdrawal rates all day, but I’ll save that for another post. If you have any doubts about making your money last, just be careful in the first 10 years of retirement when it matters most.
Remember when I asked you to calculate your yearly spending? After that, I told you about the 4% Rule. Now, you just need to do this:
Yearly spending x 25 =Money needed to retire
Let’s assume that you spend $40,000 per year and therefore, need $1,000,000 to quit. For our little exercise, I’ll also make these assumptions:
Here are your magic numbers:
Let’s look at an example. Saver Samantha is 40 and has accumulated $400,000 . She spends $40,000 per year, so needs $1,000,000 to retire. At her current savings rate, she’s going to make it and then some:
Nice work Samantha!
If you want to track your magic number automatically as you work towards it, you can sign up for Personal Capital’s free retirement planner here.
Are you intimidated? Don’t be. In my examples, the savers achieved their goals by saving $1,000 per month. At that amount, you’re not even close to maxing out your 401(k). With an employer match and potential spousal income, I know you can do it. You could even start setting up an IRA account, to secure more money for your golden days.
And investing doesn’t have to be complicated. Salesmen on Wall Street pedalling overpriced, sub par investment products want you to think so, but services like Betterment allow you to easily and efficiently invest in low-fee index funds.
What about you? Have you planned for your retirement yet?
Millions of people dream of early retirement, but few actually take the steps to make early retirement a reality. Early retirement calculators can help you assess where you are and what you may need to change to retire early.
Whether you want to retire at a specific age or within a certain number of years, the right early retirement calculator can help you understand what you need to do to walk away from working life once and for all.
At InvestmentZen, our favorite early retirement calculator comes from Personal Capital. Personal Capital offers a wide range of investment analysis tools including an early retirement calculator that is absolutely free.
Personal Capital advisors also has full service wealth management services where they charge a fee to manage your entire portfolio, but the portfolio and investment analysis tools from Personal Capital are free.
The Personal Capital retirement calculator shows you where you are and the likelihood that your current investment strategy will last as long as you need. In the screenshot above, I plugged in my current age, portfolio, and a target retirement age of 45 years old to see how I would fare.
This powerful calculator showed that I have a 78% chance of meeting my goal of $40,000 per year in retirement based on my current savings, spending habits, and projects retirement contributions. I need to up my game to make it to 100!
Find out how you are doing in several potential early retirement scenarios quickly at Personal Capital.
Disclaimer :
All of these investments should be discussed with an investment professional and analyzed based on the specific needs, risk tolerance and suitability of the investor. There is not one type of investment that is appropriate for everyone.
Fotokredit: American Advisors Group | Flickr