In planning for retirement our first objective should be to “get real”. Many of us are just not all that prepared to replace our working income in a comfortable retirement. It’s kind of like losing weight, we know what we need to do to get there, and we just don’t have the discipline and focus to achieve our goal. According the Employee Benefit Research Institute:
“…. Workers who say they are very confident about having enough money for a comfortable retirement this year hit the lowest level in 2009 (13 percent) since the Retirement Confidence Survey started asking the question in 1993, continuing a two year decline. Retirees also posted a new low in confidence about having a financially secure retirement, with only 20 percent now saying they are very confident (down from 41 percent in 2007).”
Well, good news!!! That’s what we do here at Clearview Investment Partners, LLC. Try the calculator below to see how you stack up, and then give us a call so we can talk.
Annual Income (average over last 5 years)
Number of college educated children
Number of non-college educated children
Value of primary residence
Mortgage on primary residence
Estimate of Remaining Mortgage on Primary Residence:
Remaining Mortgage on Primary Residence
Estimated Net Worth after adj. for leverage in Primary Residence:
You’ve seen many retirement calculators that attempt to tell you how much you will need in savings to retire comfortably, but omit many important variables that impact most people. Often times the results seem so unachievable that many people just stop trying to save. This calculator tells if you are on track now and if you need to step things up or if you can relax a bit. Its major assumptions are that you will retire at about 65 years of age and have your primary residence paid for. This is important because many people have used their homes to access cash leaving them with a sizable mortgage late in life. This becomes a liability which must be funded in retirement rather than an asset to be lived in close to rent free. Another assumption adjusts for individuals or couples with kids (especially with college educations in mind). Having children can have a large impact on the ability to save, but it also reduces the standard of living for those folks with children and they’ve learned to compromise. This ability to prioritize and compromise will likely continue in retirement, thereby reducing the amount needed at retirement.