Retirement Number Myth
Don’t guess your number. Follow a process.
What This Means
One of the biggest retirement myths is that everyone needs the same amount of money to stop working.
You’ve probably heard you need $1 million, $2 million, or even more to retire comfortably. The truth is, those numbers are meaningless without understanding the lifestyle they’re meant to support.
In this video, I walk through a real client example. Like many people, he assumed he needed far more money than he actually did. After calculating his expected retirement expenses, accounting for Social Security and other income sources, and determining what his portfolio actually needed to provide, we discovered his work optional number was approximately $700,000.
That doesn’t mean everyone can retire with $700,000. It means every retirement plan should begin with a process—not a headline.
Your retirement number should be based on your spending, income sources, goals, and financial situation. When you understand those pieces first, the number becomes much easier to calculate.
Common Questions
Why was his number only $700,000?
Because his expenses were lower than he expected and a meaningful portion of his retirement income would come from sources outside of his investment portfolio. Once we did the math, his required portfolio was much smaller than what typical headlines read. We worked in reverse to arrive at roughly $700,000.
What is the biggest mistake people make when calculating their Work Optional number?
Most people start with an account balance. We start with your lifestyle. Once you understand your expenses and the income you’ll receive from sources like Social Security, your Work Optional number becomes much easier to calculate.
Free Resource
PureVest Monthly Expense Worksheet
Our Monthly Expense Worksheet will help you take first step toward calculating how much you really need to stop working.
Remember This:
There is no “magic” number. Only the number that’s right for you.