How Much Money Will You Need to Spend in Retirement?

Have you ever worked with one of those online retirement calculators?  You plug in certain information — like your current income and savings, your expected rate of return, maybe an inflation factor — and eventually it tells you how much money you should aim to have in your portfolio at retirement in order to give you the income you need.  Here’s the problem – they often give numbers that are far higher than you’ll actually need.

If you require, say, $100,000 of income to retire at age 65, will you really need $230,000 per year 30 years later just to keep up with inflation? From our experience, as retirement goes on, spending needs (and thus your income needs) tend to go down over the long term – not up.

What this means is that you may not need to have as much socked away in your portfolio as those online calculators would suggest.  “Professor” Rick Plum, CFP® gives you the details about retirement spending, retirement income, and the potential value of financial advice on this week’s edition of Lucia Capital Group Weekly!

Important Information:

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from LCG or from any other investment professional.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

The information provided is based on current laws, which are subject to change at any time. Lucia Capital Group is not affiliated with or endorsed by the Bureau of Labor Statistics or any government agency.

Rick Plum is a registered representative of, and offers securities through, Lucia Securities, LLC (“LSL”), a registered broker/dealer, member FINRA/SIPC. Advisory services offered through Lucia Capital Group, a registered investment advisor, and holding company for its affiliated broker/dealer LSL. Registration with the SEC does not imply a certain level of skill or training. John Dean is an associated person of LSL. J.P. Morgan Asset Management is not affiliated with Lucia Capital Group or any of its subsidiaries.

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