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Welcome to our Blog! At Baron Silver Stevens, we feel it is important to empower our clients with information that can positively affect their lives.

Throughout our Blog, you will find interesting articles, updates on our firm, and practical financial planning tips.

How Long Will $1 Million Last in Retirement?

How Long Will $1 Million Last in Retirement?

$1 Million used to be the ultimate retirement portfolio benchmark for successful Americans. Being a millionaire brought status as well as the peace of mind of knowing that you could look forward to a comfortable retirement lifestyle with all the trimmings. Is that still true?

We ran a series of hypothetical calculations to illustrate how long an average American retiree could expect their million-dollar portfolio to last in each state. Click here to take a look...

However, these hypothetical examples leave out a lot of critical details that will impact your own retirement timeline. Here are a few:

  • The expenditures used in the calculation are just averages. Depending on where you live and the lifestyle you lead, you could spend more or less than your state's average. That's why getting a personal retirement income analysis is so important.
  • The expenses used by the Bureau of Labor Statistics to construct an "average" lifestyle are also fairly conservative and don't include discretionary stuff like travel, gifts, or entertainment. A custom analysis would be based around your current and future expected expenses, including the fun stuff.
  • This is a big one. These calculations were run assuming that a $1 million portfolio would grow at a stable annual rate. You already know that investments can experience drastically different performance from one year to the next. That's why it's critical to build an income plan that can respond to ups and downs in portfolio value.

A COOL MILLION JUST ISN'T WHAT IT USED TO BE

Were you shocked by how little $1 million can last in some places? Or how long in others? It certainly illustrates what a difference cost of living can make to your finances.

Bottom line: The infographic in the link is a useful starting point. But, the personal timeline for your retirement portfolio depends on your answers to questions like:

What will your lifestyle cost each year?
How much will your portfolio grow over time?
What will inflation look like?
How much will you pay in taxes, healthcare, and other major expenses?

You need personalized answers to these questions. If you haven't gotten them already, I can help. As a financial professional, I have the tools needed to answer the big question:

Is your portfolio enough to fund your retirement? If you're not 100% sure, give my office a call to schedule a complimentary, no-strings-attached retirement readiness review.

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