David Lerner Associates News

How Much Do You Need to Retire?

Core Facts


Monday, August 27, 2018

Planning for your retirement means calculating how much money you need to live on -- not just survive, but actually live the way you would want to in retirement. If you are not sure how much that is and want to find out what you will need, there are a few ways to do it.

The first thing you will need to do is figure out how much that desired lifestyle costs. Things as innocuous as your annual food bill will have to be figured out, as well as all the other necessary expenses you have every year. [According to research by GOBankingRates, the amount Americans spend on groceries came in at number two as the most expensive monthly budget item. The survey revealed that the average amount spent every month on groceries was more than the combined cost of their car payment, household necessities, and clothing.

Unless your mortgage will be paid off, add to that your rent or mortgage payment and services like power, gas and electric, as well as phone and internet. You’ll soon see that your Social Security check won’t be enough. In fact, according to the Social Security Administration, your benefit will only replace about 40% of your income.

If you have a 401(k) where your employer also contributes to your retirement fund, you could be in a better position than you thought. Check to see how much has accumulated in your plan. The average American in 2017 had over $97,000 in their 401(k) in the second quarter of the year.

Once you’ve figured out your living costs, factor in healthcare and long-term goals. Work out how much you earn and how much you have been saving up to now. You can use a retirement calculator like this one:  https://www.davidlerner.com/calculators/retirement-calculator

When you are ready to invest in a retirement annuity or some kind of portfolio, get as much information as possible from reputable sources that are trustworthy. Once you have some information and advice about different types of investments or retirement plans, you can see what matches with your needs.

 

IMPORTANT DISCLOSURES

Certain investment products are offered by prospectus only. Investors should request a prospectus from the issuer or sponsor before investing. Read the prospectus carefully and consider the investment objective s, risks, charges, expenses and other information before investing.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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  • Press Contacts

    Jake Mendlinger
    Account Manager
    Zimmerman/Edelson
    516.829.8374 X 232
    jmendlinger@zimmed.com
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