Early Retirement Blog

A front page article on Yahoo titled “$1 Million Doesn’t Cut it For Retirement”, claims that “A majority of experts now say $1 million is not nearly enough for a truly secure retirement.”

The article cites a Scottrade survey of 229 registered investment advisers which found that   “71% don’t believe $1 million is enough for the average American family. Most said families need to save double, or more than triple, the amount.”

There are two problems with the article which was seen by millions of worried working Americans.  First, you can retire with less than a million dollars, and second, the retirement experts cited in the article are not retirement experts – they’re salesmen.

These so called retirement experts are experts at only one thing, selling you investment products on behalf of Wall Street, and collecting large commissions and fees.   According   to 35% of the experts, boomers need $2 million to $3 million,   thirty percent suggested $1.5 million to $2 million.

By telling you that you need $2 million more than you actually need for retirement,   you will be forced to work many unnecessary additional years, earning these retirement experts tens of thousands of extra dollars at your expense.

Typical of the attitude of these retirement experts is Bill Smith, president of an investment advisory firm in Ohio, “I’ve never been a big fan of planning to earn less in retirement than you are making now,” he says. “I’d like to see an individual continue making the same amount of retirement as when he was working. Who wants to set themselves up in retirement to make less?”

Make more each year in retirement than you make right now?   How does Bill think you are going to pull off that bit of investment magic?  You’re not, but while you try, Bill will be earning a lot of extra income from charging you commissions.

You do not need $3 million, $2, million, or even $1 million to retire.   How much savings you need for retirement is determined by how much you plan to spend in retirement.   If you are a boomer close to retirement, a net worth of $1 million allows you to spend $3, 750 per month.   If you create a retirement budget of $3,000 per month you will need $800,000 to retire.

If you are eligible to receive $1,000 from Social Security and/or Pensions, your $3,000 per month retirement budget, only requires a net worth of $533,000 to retire.   If you go talk to a “retirement expert” you will be told you need millions of more dollars than you actually need to retire.

Again, all these retirement experts are expert at, keeping you working, and earning commissions and fees.   Try our free retirement calculators and find out how much savings you really need to retire.

Visit the Early Retirement Planning Website and retire when you want.