Which will run out first – your money or your life?

If you’re like a lot of people, the answer is your life.

Many people live 20 or more years past retirement, and it’s not like they quit spending money. In fact, many retired people plan to travel, take up new hobbies or buy that vacation home they’ve always dreamed about. After all, they’ve earned it.

Those are all great ideas, but they cost money, and the average person has no idea how much money they’ll need to save for retirement. It’s easy to see why. The numbers are hard to comprehend.

For example, most experts say the average retiree spends 70-80% of their income they earned during their last five working years. So, let’s do the math.

Say you made $62,000 per year during your last working years. Statistically, you’ll spend eighty percent of that that amount – $49,600 – per year.

Now multiply that number by 20 (the number of years in your retirement) and you get $992,000. That’s almost one million dollars you’ll need to save. It works out to roughly $67.95 per day for 40 years.

How are you doing?

Now, you can quibble about the numbers. Some experts recommend saving more, others say less because you won’t have as many expenses, but here’s the main point – you need to invest in your future if you want your dreams to happen.

Fortunately, your money can help you. Through a regular savings plan and solid financial products, your dollars can create more dollars. A 20-year old who invests $10,000 today will have $100,000 by the time she retires, assuming a 7% return. A 30-year old worker who invests the same amount will have only half as much.

The sooner you start, the sooner you’ll reach your goal. We can help you develop a plan for reaching those goals. Please read through our investment section and e-mail us with any questions or stop by one of our locations to set up an investment account.