Are You Investing Enough For Retirement?

How do I know if I'm saving enough for retirement?

This is one of the biggest questions we get asked. Here is a brief calculation to determine when you can retire:

1. First, determine what you want "retirement" to look like! Then, figure out how much that life will cost (both annually and monthly).
2. How much income will you bring in when you stop working? Think rental real estate, pensions, Social Security, etc.
   1. Calculate all of the income you'll bring in from all sources, even side hustles and selling items.
3. How much will your savings/investments provide?
   1. This could be IRA's, 401k's, 403b's, Superannuation, or mutual funds/stocks/bonds/ETF's  outside of these accounts (non-retirement).
   2. If you invest properly, you'll find you can probably make an average of 10% annual return. Remember, this is an average, not a year over year stat.
      1. Example, $500,000 invested should provide you with $50,000/year on average. Some years you'll make more and some less.
      2. Retirement calculator link: https://www.vertex42.com/Calculators/retirement-calculator.html  
4. When you determine you have enough income to support your retirement lifestyle from these sources, you have the option to retire!

Both Mike and Jason used this calculation to retire in their 30's and we are living our Ideal Lives! Shoot me a message and let me know if you are on track. Or if you want help determining how you can get organized to put yourself in a better financial position, book a free discovery call with me.

https://www.sentinelcoaching.com/coaching