Of course, anything is doable if you calculate the details, understand percent averages, risk, and emotions.
Of course, anything is doable if you calculate the details, understand percent averages, risk, and emotions.
If you were retiring today, and you had been planning, you might have the following:
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Retirement Income from Social Security of $15,000 to $25,000.
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Retirement Income from a long term career with the State of Wisconsin of $40,000 to $60,000.
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Your savings and investments of $500,000 which would yield a yearly income of $30,000 if you chose to take out 6% each year.
Easy – you now have a yearly income of $85,000 to $115,000.
The above example is true for many people – people who took a job with the State of Wisconsin and retired earning income in the neighborhood of $60,000 to $90,000. Those people would also have earned a social security retirement of $20,000 to $25,000.
Think in terms of where your income will come from in retirement. Some jobs and careers continue to promise an income at retirement that you can expect if you work with that employer until retirement. Other jobs help by matching a percentage of what you put into a retirement plan available through the employer. The employer has made it possible for you to save significant dollars of your pay into a plan that will be tax deferred or tax free (Roth accounts) in retirement. There are also retail accounts that offer more investment choices without the age-related penalties of traditional work accounts.
You are in charge and the accounts will be all yours to manage and enjoy; you can use those accounts to plan the amount of income you will have in retirement. It all depends upon you – how you invest it, how much you believe you can earn on average, and what return you expect to earn on that money. It certainly is possible to plan for a $100,000 retirement income.
For help with planning, contact our office; we have been helping people reach a successful retirement for years.