Retirement is expensive. We know this.
Most people aren’t adequately prepared for retirement. We also know this.
And the situation just keeps getting worse. Medical science just keeps getting better, which means we’re living longer than ever (feels strange to call this a bad thing, but from a financial perspective it makes retirement more expensive), and a lot of people are counting on the markets to bail them out (which is a wildly risky – read probably bad – idea).
In this article, our own Wade Pfau – along with Michael Finke and David Blanchett – walk through the grim arithmetic of what people need to do to simply keep the same standard of living in retirement they had when they were working.
Depending on your situation, and what you are trying to do, well, some of the required savings rate will give most people pause.
This doesn’t mean you should live like a pauper and start looking into which brand of cat food tastes best. But it does mean you need to think carefully about what you want to get out of retirement, and start working toward it now.
The earlier you start preparing, the easier it will be to get where you want to go.
McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.
The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.