Showing posts with label
Retirement: What's your plan?.
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Showing posts with label
Retirement: What's your plan?.
Show all posts
Fortune Magazine's recent retirement issue writes that you will need $5 million to retire comfortably. Here's what they wrote in their introduction to the issue:
"... Back in the day, $1 million was the symbol of wealth - and the amount financial-planning types said we all needed to live large in retirement. But $1 million just isn't what it used to be. (Forget for instance the beachfront home on Hilton Head Island.) What does it take now?
As we explain later in this issue, figuring out what you'll need is educated guesswork. So let's start with the pile of money pictured at left. That's $5 million, your new magic number. Using a 4% withdrawal rate, that kitty would get you a hefty $200,000 a year, which should be plenty to live richly.
Think $5 million and a life of ease are beyond your reach? (Hint: read the Fortune Magazine issue duh.) Read on for great advice on choosing stocks and funds, finding bargain condos - and making the tricky transition from working stiff to lucky stiff..."
Eric Gelman from Fortune wrote this intro. My favorite part was the last line: "making the tricky transition from working stiff to lucky stiff". If only I get so lucky!
Warning! Nerd Alert: I got my Fortune magazine today and I'm very excited because it's their annual retirement issue! There was an ad from Hartford Financial that really got my attention. I tried searching for it on the net but couldn't find a similar one anywhere, so I did the next best thing, I took a picture of it with my digital camera and included it for your viewing pleasure.
As soon as I read the ad's text "You're not preparing to retire.... You're preparing to live" I asked myself a couple of questions: Am I allowed to live now as well or is it only a post-retirement phenomenon? And why can't I be in that little plane now?
I get the ad's original message but if you look at it from a different perspective you can come up with a completely different conclusion. At least I did and that's why I cut out the add and sticky taped it prominently on my wall!
"... Conventional wisdom says go to school, get a degree or qualification, get a job, work til you 60's then hopefully have enough to enjoy your "twilight years". One day we will arrive at that magical time when we can apparently sit back and enjoy the fruits of our labour. In the meantime we defer living to accomplish the doing."
>> A quote from the Perfect Life Project that got me thinking more about my own assumptionsI took some time today to read up on retirement. Background info about me in 10 words or less: I started my first job out of college recently. Being a little anal-retentive I spent a lot of time worrying and stressing about how much I will need to save each month for retirement. Numerous excel spreadsheets and calculations later got me nowhere. Then it occurred to me that I haven't thought at all about a much more important question: do I want to retire and do I even like the concept of retirement?
I've decided to still save some money for when I'm older but to also create a travel and entertainment fund for the next 12 months. I'll post one more quote and then I'm off to tap into that fund! I'll be much happier looking back when I'm 60 about the memories I'll make tonight!
As we explain later in this issue, figuring out what you'll need is educated guesswork. So let's start with the pile of money pictured at left. That's $5 million, your new magic number. Using a 4% withdrawal rate, that kitty would get you a hefty $200,000 a year, which should be plenty to live richly.
