Retired happy couple

Advanced Math Investing:

Reach Your Retirement Goal

Reaching your Retirement Goal
The average retirement plan should have $1 million at retirement.

Why the $1 million goal?

Here's the math:

  • 1 Retire at 67 With $1,000,000 Saved.
  • 2 Assume You'll Live Another 15 Years (82).
  • 3 Divide 1 Million by 15 You Get $66,666. That's Your Income.
  • 4 Assuming your working income is $100,000, you'll live at the same level. (Add social security, minus no home mortgage, and the kids have finished college.) One million should be a reasonable goal for a comfortable retirement lifestyle.

Figures used in the table are examples and do not reflect any current client. The 2.5% goal may vary with every client. No performance is guaranteed. Past performance is no guarantee of future returns.

How do I reach $1,000,000?

Here's the math: Use the following table for examples using age and savings for an average employee's 401k plan.

Age Currently Saved Salary With 3% Increase Contribution Percents Employer Match Percent Investment ROI (Normal) Amount at 67 Years Old Advanced Math annual goal is 2.5% above the current year S&P price return Total with goals reached Goals can vary due to client risk tolerance and market conditions. No guarantees of performance or goals are implied

In addition to 401k plans, there are also:

  • ROTH IRAs (2016 limits) Allow you to invest after taxes, which gives you tax-free retirement money. It has contribution limits of $5,500 ($6,500 if over 50 years old) and income limits (single ineligible at $117,000 agi, married ineligible at $194,000). We recommend this.

Traditional IRA's

  • Allows you to invest before taxes. There are no income limits, but ROTH and IRAs combined cannot exceed the $5,500 or $6,500 limitations.

Retirement Planner (example only, download the form below)

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