What is your number?

by | Oct 11, 2016 | News and Updates

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I recently saw an article that emphasized that you should have some magic number of assets saved up for retirement. While I agree that the assets play an important part in retirement planning, often they are underfunded and other saving objectives throughout life have a higher priority. What is missed in articles like this is that people often fail to take advantage of the elements of retirement that they can control. The timing of the coordination of these resources will have a significant impact on the longevity of your assets. For example, if someone chooses to retire at 62 and has insufficient assets for retirement they may be better off taking Social Security early, but if they live a long time will still run out of liquid assets. On the other hand, if they delay Social Security until 70 they will deplete assets even sooner to cover the gap while delaying Social Security. This delaying of Social Security may lead to greater cash flow later in life, but the problem of running out of liquid assets still exists. So, in this case, taking Social Security early is not a good option and delaying Social Security is not a good option and in either case, they do not have enough liquid assets to last a lifetime. What can they do? The third an often overlooked resource is to continue working. Then they can match the Social Security strategy with the assets  to meet or exceed the expected mortality. While there is a number that will comfortably provide enough income to last a lifetime, it is not the norm and the majority of people will have to figure out how to get the most out of what they have and be strategic about using all their resources to their fullest potential. The reason I created Retirement Resource Management is to help people put all these resources together and educate them on the best path for retirement. Retirement is not a number but a plan of using what you have to the greatest potential. We are here to help.

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