A very important aspect of retirement planning is being realistic with what can be accomplished. I am sorry but if you are in your late 50’s and you have just begun to save, it is very unlikely you will be able to retire at 62 with a portfolio large enough to support spending $10,000 a month. If someone says you can because they can provide you with 20% annual returns run… fast…
When building a retirement plan it is important to be realistic with what can be accomplished based on what you have saved and what ability you have to save in the future. It is also extremely important to be realistic with the assumptions that make up the retirement plan. Of course someone’s plan will look bright if it is based on annual inflation rates of 1% and investment returns of 15% but the probability of that occurring over the next 30 years is very unlikely.
The more conservative the assumptions in the plan and the more honest we are with ourselves about what we can expect from the plan, the more likely we will have a successful and enjoyable retirement.
If you haven’t recently reviewed your retirement plan you should contact your CERTIFIED FINANCIAL PLANNER™ Practitioner.
If you aren’t currently working with a CERTIFIED FINANCIAL PLANNER™ Practitioner you can find one HERE.