Over the last 14 years I’ve spoken with hundreds of senior executives who are on $500K – $2M+, but can’t afford to retire…They are literally spending as much as they are earning.
The purpose of this post is that I don’t want you to wake up suddenly in 5 years time and get anxious about your future.
Today I’d like you to work out approximately how much money you’ll need for your retirement. It’s a simple exercise and it’ll get your mind focused on one of the most important priorities in your life.
Use this template as a guide to work out your cost of living when you retire. Click on the image here.
Just last week, I sat with a 58 year old male CEO who was earning $1M+. He had been recommended by one of my clients, because he wasn’t sure how much money he’d need to retire.
We made a list of all his assets outside of the family home (your home is where you live; it is not an asset). We then made a list of expenses – debt repayments, living costs, insurances, holidays and all the fun stuff he and his wife still want to experience.
We then had a number. There is no reason to expect he and his wife will not live well into their 80s, so we then multiplied this number by 25, and worked out how much he needed to retire.
This simple exercise made it easy for him to work out exactly how much he needed his assets to generate each year (including what type of assets were needed and which assets could be liquidated).
When you have completed the template, think about the your answers to the following questions:
- What does retirement look like for me?
- What am I going to do in retirement?
- When am I going to retire?
- What is it going to take financially to be able to live that life?
- Am I on track to achieve this?
- What am I going to do to close the gap?
In our experience the better planned and financially prepared you are the more choices you have, and the more secure you feel. We help by developing clear pathways for you to move forward to successfully resolving your key challenges around building long term security and financial well-being.
We offer A Second Opinion for those who want a non-biased view of your current financial plans to double-check that the advice you’ve received will actually help you reach your goals.
If you would like a confidential discussion:
Phone 02 9492 0444
This simple template can help you become crystal clear about what your number is i.e. the amount of money you need to retire. The next questions then is what assets you need to generate this number.