Why even $1M may not be enough for retirement
6:56 p.m. EDT April 22, 2014
You've been saving like a miser to get ready for retirement. You've pinched pennies, kept that last car for what seems like an eternity. And now you've banked a cool $1 million for your retirement years.
Think you're set?
"Thirty years ago, $1 million was a huge amount of money," says Haitham "Hutch" Ashoo, CEO of Pillar Wealth Management, in Walnut Creek, Calif. "Today, given today's lifestyles and costs, it isn't so much money."
"That is not that much money on an annual basis."
Heider says that 10 to 12 years ago, when people earned a lot more on their investments, $1 million could generate $70,000 to $80,000 a year in retirement income. But with interest rates as low as they are, that's not really feasible.
"At the end of the day, if you want to have a quality retirement, to do what you want to do, I think you need at least $1 million," says Michael Wall, president and founder of Wall Financial Group, in Altoona, Pa., and Palm Beach Gardens, Fla.
"A lot of my clients are 50-plus," he says. "They are still from a world where they have a small pension. Some have real estate. Then there's Social Security. A lot of clients are in a place where they have lived below their means. They can live on a million.
"Not everyone will have $1 million," he says. "They will not have the ability to have as many choices, to do and go and buy and travel. I definitely would suggest that clients shoot to have at least that much. You are talking about 30 or 40 years of unemployment, called retirement."
http://www.usatoday.com/story/money...ment-pension-financial-planning-401k/7864899/
How many have achieved this goal already?
Given this is ET, I know there are many elite traders here who have saved at least that much for retirement.
6:56 p.m. EDT April 22, 2014
You've been saving like a miser to get ready for retirement. You've pinched pennies, kept that last car for what seems like an eternity. And now you've banked a cool $1 million for your retirement years.
Think you're set?
"Thirty years ago, $1 million was a huge amount of money," says Haitham "Hutch" Ashoo, CEO of Pillar Wealth Management, in Walnut Creek, Calif. "Today, given today's lifestyles and costs, it isn't so much money."
"That is not that much money on an annual basis."
Heider says that 10 to 12 years ago, when people earned a lot more on their investments, $1 million could generate $70,000 to $80,000 a year in retirement income. But with interest rates as low as they are, that's not really feasible.
"At the end of the day, if you want to have a quality retirement, to do what you want to do, I think you need at least $1 million," says Michael Wall, president and founder of Wall Financial Group, in Altoona, Pa., and Palm Beach Gardens, Fla.
"A lot of my clients are 50-plus," he says. "They are still from a world where they have a small pension. Some have real estate. Then there's Social Security. A lot of clients are in a place where they have lived below their means. They can live on a million.
"Not everyone will have $1 million," he says. "They will not have the ability to have as many choices, to do and go and buy and travel. I definitely would suggest that clients shoot to have at least that much. You are talking about 30 or 40 years of unemployment, called retirement."
http://www.usatoday.com/story/money...ment-pension-financial-planning-401k/7864899/
How many have achieved this goal already?
Given this is ET, I know there are many elite traders here who have saved at least that much for retirement.
