By Ryan G. Murphy, RTDNA, Special for US Daily Review
People often question what the right retirement “magic number” for them is – the dollar amount at which they can stop working and live a lifestyle comparable to what they enjoyed during their working years.
That number typically incorporates several personal factors like: “What’s your spending like?” “How old will you be when you retire?” “How much inflation do you expect?” “What will my major expenses be?”
A brief chat with a financial advisor can help any aspiring retiree, age 20 or age 60, figure out the ballpark where that magic number is located. For many people, $1 million is a number that gets talked about a lot. And while $1 million may not have the same weight as it once did, letting people in your audience know that it is a very attainable retirement figure is something that could give them a tangible incentive to take a serious look at their retirement planning. After all, a million dollars is a million dollars!
The good news for your audience members is that with consistent, disciplined investing, $1 million can be a certainty, not just a pie-in-the-sky number.
Take a 30-year old woman for example. If she currently has $5,000 saved for retirement and is able to put away $100 per month (and gets an 8% return), she will have accumulated $1 million by age 79.
If she’s able to double that $100 a month to $200, she will have $1 million at age 72. To retire with $1 million at age 65, she’d need to save $400 a month.
Not as hard as you may have expected, right? Giving your audience a look with hard numbers about what they need to save to get to $1 million might be exactly what they need.
In a “millionaire” package or story for the web, make sure you inform your audience about the current state of social security and how private pensions are quickly becoming a thing of the past. Now, more than ever, it’s important for people to take their retirements into their own hands. Almost all companies have investment options, whether they are 401Ks, 403Bs, or IRAs.
In your package, outline some of the benefits to each plan and speak with some local financial advisors about the benefits of saving consistently. Even if you audience walks away from your story with a different “magic number” than $1 million, you will have gotten them on the right track of retirement savings!