To live comfortably upon retirement, financial planner Brian Fry from Safe Landing Financial said that a minimum of $100,000 a year budget is needed.
Fry clarified that this figure is just a standard and living comfortably upon retirement is based from a person’s lifestyle, needs and money invested.
The Business Insider reports that exiting the 9 to 5 job at the age of 35 is possible, only if a person has $5,225,000. This is the starting taxable investment of a person who wishes to live comfortably and to escape work at an early age.
However, financial planners also believe that having hobbies with monetary value such as blogging and real estate investing is also a good thing. This will help retirees have a continuous stream of income even in their retirement.
Updating financial plans yearly is also recommended by the financial planners at Safe Landing Financial. This will help investors scale back spending.
“Investors tend to be their own worst enemy when experiencing investment loses. If you don’t have the time, interest, discipline and expertise, it’s better to work with a fee-only certified financial planner that can tailor your investments to track to your financial plan,” said Fry.
The ideal asset allocation according to financial planners is 60 per cent stocks and 40 per cent bonds. Financial planners also said that people need to consider the taxes that come with every investment scheme.
There are also some perks that come with retiring on the 60s because of the Social Security and retirement accounts. For social security, the time that a person withdraws all his or her contributions, this funding can add up to their source of income after working.
To attain the $100,000 yearly target income, allocate $8,333 savings a month.