In this episode, I explore the key question for any future retire: how much do you need to retire comfortably?

Key Takeaways:

- The Reality of Retirement Savings: A couple, Lisa and John, thought they had enough savings ($1M), but they underestimated inflation, healthcare costs, and lifestyle changes. By age 75, they were worried about running out of money.

- The 4% Rule: A common rule suggests withdrawing 4% of savings annually to last 30 years (e.g., $80K/year requires $2M in savings). However, experts warn that market downturns and inflation require flexibility.

- Three Key Factors to Consider:

1. Lifestyle: Travel, location, and family proximity impact financial needs.

2. Healthcare Costs: A couple may spend $300K+ in retirement, making insurance and HSAs important.

3. Income Sources: Social Security (~$1,800/month) helps but isn’t enough; rental income and part-time work provide stability.

4. Smart Retirement Planning: Mike, another retiree, built multiple income streams (downsizing, dividends, consulting) instead of relying solely on savings.

Action Steps:

✔ Use the 4% rule as a guideline but stay flexible.

✔ Account for inflation, healthcare, and lifestyle changes.

✔ Diversify income with investments, rental income, or part-time work.

✔ Start planning early to maximize security.

For more insights, the next episode will cover 401(k) vs. Roth IRA: Which Retirement Plan Is Best for You?