A million dollars used to be the ultimate target for retirement portfolios. Retiring as a millionaire brought status and confidence that you could live comfortably during your golden years. If you retired with $1 million in 1970, you probably wouldn’t have to worry about your nest egg running out, even with a lavish lifestyle. It would be like retiring with over $7.8 million today. Retire with $1 million in the ’80s, and it would be like retiring with over $3.7 million in 2023. And in 1990? A cool $1 million would go twice as far as it does these days.
Clearly, $1 million doesn’t go as far as it used to. Just how far will it go these days? The answer depends on how and where you live.
In retirement, as in real estate, location is everything (or, at least, it’s a lot). The map here shows how long $1 million could last in each state. Click on that link to see a state-by-state breakdown that features a few different hypothetical growth scenarios and the results of our calculations.
While benchmarking your likely expenses is a good starting point, tweaking them for your personal situation is critical. As is remembering that your expenses will change as you journey through your retirement. In my experience, folks typically spend more on lifestyle, family, and fun at the beginning of their retirement and may see their medical and long-term care expenses increase as they age.
Bottom line? We’ll navigate them together. Call our office today to schedule a meeting.