Let’s break it down.

1. Retirement Age

The earlier you want to retire, the more years you’ll need to fund without earned income—and that means higher savings. Retiring at 60 instead of 67 could mean needing hundreds of thousands more. On the other hand, delaying retirement gives your investments more time to grow and reduces your required annual savings rate.

2. Annual Spending

Forget replacing your income—what you really need is to replace your spending. If you’re spending everything you earn, you’ll need to replicate that level in retirement. But if you’re a super saver, your needs may be far lower. That’s why a custom retirement budget is more helpful than guessing based on averages.

3. Withdrawal Rate

This is the rate at which you safely draw from your savings in retirement. A 4% rate means you’ll need 25 times your annual spending. So if you need $60,000 per year, you’ll want $1.5 million. Prefer a safer 3% rate? Now you’re aiming for $2 million. Choose a more aggressive 5%, and $1.2 million might do the trick—but with more risk.

4. Other Income Sources

Pensions, Social Security, annuities, and rental income reduce how much you need to save. For example, $2,000/month in Social Security can offset nearly $500,000 in savings. Make sure to factor in all guaranteed income when calculating your savings target.

5. Longevity

How long you live affects how long your money must last. Planning for 25–30 years in retirement means keeping withdrawal rates conservative—perhaps 3.3% instead of 4%. That increases the amount you need saved but helps guard against running out of money.

6. Inflation

A 3% annual inflation rate means your $60,000 spending today could balloon to $145,000 in 30 years. Investing for growth is essential to keep pace. The good news? A safe withdrawal strategy like the 4% rule typically builds in inflation adjustments to maintain your purchasing power.

7. Healthcare Costs

Healthcare costs tend to rise as you age. Retiring before Medicare kicks in at 65 means covering 100% of your insurance. Even after 65, Medicare doesn’t cover everything—think dental, vision, hearing, and long-term care. A dedicated healthcare fund or HSA can help fill the gap.

8. Dependents

Supporting aging parents, adult children, or grandchildren? These added financial responsibilities stretch your retirement dollars. Whether it’s tuition support, caregiving, or living assistance, planning for others adds complexity—and cost—to your retirement equation.

9. Legacy Goals

Do you want to leave something behind for loved ones or donate to a cause? That goal increases your savings needs too. You’re not just saving to support yourself—you’re building a financial legacy.

Bottom Line:
There’s no shortcut to figuring out how much to save. But with these nine factors in mind, you can create a plan that reflects your real needs—not generic advice. Start early, stay intentional, and don’t compare your journey to anyone else’s. Your retirement is your destination.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post 9 Factors That Determine Exactly How Much You Need to Save to Retire appeared first on ROI TV.

Alan Clopine and I will walk you through the numbers, the strategies, and the traps to avoid so you can retire with confidence. Here’s what you need to know.

1. Retirement Savings: The Real Targets

People love to throw around round numbers—$500,000, $1 million—but retirement planning is more complex than that.

• Longevity matters. If you’re 65 today, you’re likely to live well into your 80s or even 90s. That’s a long time to fund.
• Healthcare is a big expense. The average 65-year-old couple spends around $315,000 on medical costs over their lifetime.
• Inflation silently eats your purchasing power. At 3% annually, your dollar loses half its value in about 24 years.
• Taxes aren’t going anywhere. Pre-tax accounts like 401(k)s will be taxed as income later, while Roth IRAs grow tax-free. Knowing where your dollars live matters.

To plan right, you need to look at your spending habits, location, expected health costs, and tax positioning—not just the balance in your account.

2. Generating Income in Retirement

Once you’ve saved, the next question is: How do I make it last?

We explored the pros and cons of two common strategies:

Annuities

• Offer guaranteed income for life by shifting risk to an insurance company.
• A 67-year-old investing $1 million could get $6,300/month, based on Schwab’s estimator.
• Downsides? High fees, lack of flexibility, and surrender penalties.

Investment Portfolios

• More potential for growth and flexibility.
• But they come with market volatility and require smart withdrawal strategies.

We modeled different withdrawal timelines using a 6% return:

• $19,000/month for 5 years
• $8,500/month for 15 years
• $6,400/month for 25 years
• $5,600/month for 35 years

It’s all about balancing income, flexibility, and longevity.

3. Social Security Timing: The Game Changer

Social Security makes up 50% or more of income for over half of retirees—so getting the timing right is key.

• Claiming at 62 reduces your benefit by up to 30% permanently.
• Waiting until age 70 can increase your benefit by up to 75% compared to early filing.
• Married couples should coordinate benefits to maximize their lifetime payout.

For most people, it pays to delay if you can afford to—especially if you’re in good health.

4. Want to Become a Millionaire?

It’s more doable than you might think—if you start early.

• At 30, save $700/month.
• At 40, save $1,400/month.
• At 50, save over $3,000/month.

Start small, automate it, and take full advantage of employer matches. Once you hit age 50, don’t forget catch-up contributions—they can turbocharge your savings.

5. Stretching Retirement Dollars Further

Not all retirement savings strategies are about investing—cost control is just as powerful.

• Downsize your home.
• Move to a tax-friendly state. Leaving California for West Virginia could save $30,000/year in living costs.
• Trim discretionary spending. Dining out less and traveling smarter can add years of runway to your retirement funds.

We also recommend reviewing your debt picture and aiming for a lean balance sheet heading into retirement.

6. Use the Free Financial Blueprint

Don’t guess—know where you stand.

Our Financial Blueprint Tool at YourMoneyYourWealth.com lets you plug in your numbers and see where you land. It gives you a clear outlook:

• All Good
• Average
• Needs Help

The best part? It’s free, and you can do it from the comfort of your home.

Bottom line: Retirement is more than a number. It’s about strategy—income, taxes, inflation, lifestyle, and timing. With the right tools and planning, you can retire comfortably and stay there.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How Much Do You Really Need to Retire? Breaking Down the Numbers and Strategies appeared first on ROI TV.

Changing Spending Patterns in Retirement

Spending in retirement isn’t static; it evolves as life circumstances change. The early years of retirement, often called the “go-go years,” are typically marked by higher expenses due to increased activity, travel, and personal pursuits. As retirees age, expenses generally decrease. Research shows that by age 84, retirees spend approximately 25% less in real terms compared to their initial retirement spending. One study by Chase, analyzing data from five million households, found that spending rises by about 2% in the early years of retirement, slows to 0.5% in mid-retirement, and declines significantly in later years, with healthcare costs becoming the primary expense.

Importance of Tracking Expenses Before Retirement

One of the most crucial steps before retirement is to track your expenses, ideally starting five years before retiring. This period allows you to get a clear picture of your day-to-day expenses and major costs like home maintenance or vehicle replacements. Erin recommends paying off your home before retirement to reduce financial strain. By tracking expenses early, you can better plan for unexpected costs, helping you enter retirement with confidence and fewer surprises.

Inflation and Retirement Spending

Inflation is often viewed as a major retirement threat, but it doesn’t affect every expense equally. For homeowners, housing costs may remain stable, unlike rent or other fluctuating expenses. Retirees often adjust their lifestyles—dining out less or choosing more budget-friendly vacations—to counter inflation. Real spending in retirement tends to grow at a slower rate than inflation, as retirees naturally cut back on discretionary spending over time.

Social Security and Portfolio Management

Social Security forms a significant part of retirement income, particularly for higher earners in dual-income households, where benefits can range from $2,000 to $4,000 per month. Planning for uneven income flows is crucial. For instance, delaying Social Security until age 70 can maximize benefits but may put greater demand on your investment portfolio during early retirement. Balancing Social Security, pensions, and investment withdrawals allows for a more tailored approach to changing financial needs.

Investment Strategy for Retirement

Maintaining portfolio growth during retirement is essential, and that often means keeping a strong equity presence. Erin suggests that retirees should maintain at least 50% of their portfolio in stocks to protect against inflation and ensure long-term growth. Bonds and cash act as a safety net, while equities drive growth. A practical strategy is to maintain a “cash bucket” of 2-5 years of living expenses, allowing for flexibility during market downturns without needing to sell investments at a loss.

Flexibility in Spending and Withdrawal Rates

Being flexible with spending is key to preserving wealth. Making small adjustments, like reducing annual expenses by $5,000, can significantly impact long-term security. While the 4% withdrawal rule is a useful guideline, it’s not a hard rule. Exceeding this rate during high-expense years is acceptable as long as the portfolio is robust enough to handle it. Instead of rigidly adhering to a single rule, focus on your unique financial situation and adapt as needed.

Practical Implications of Retirement Research

No two retirements are the same, and research underscores the need for personalized planning. Early retirement may involve higher withdrawals due to increased spending and postponed Social Security benefits. As retirees age, their portfolio demands typically decrease, allowing for a more conservative approach. Balancing your investment strategy to match income flow and spending changes ensures lasting financial security.

Enjoying Retirement

Retirement isn’t just about managing finances; it’s about living well. Erin stresses the importance of not being overly cautious with your savings. After years of hard work, it’s important to use your savings to create memorable experiences, like traveling or spending time with loved ones. The goal is to find a balance between financial security and enjoying life.

Conclusion

Retirement planning is about more than just saving; it’s about understanding how spending patterns change, leveraging social security and investments wisely, and remaining adaptable. By tracking expenses early, maintaining a balanced portfolio, and being flexible with withdrawals, retirees can achieve both security and fulfillment in their later years. Most importantly, remember that retirement is your time to enjoy the fruits of your labor—plan well and live well.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost

The post Retirement Spending Patterns and Portfolio Strategies appeared first on ROI TV.

Don’t Let These Pitfalls Derail Your Future

Let’s start with one of the biggest culprits: lack of cash reserves. If you don’t have an emergency fund, you could be forced to rack up debt or withdraw from your retirement accounts—both of which come with a hefty cost.

Another common issue? People not taking advantage of their 401(k) match. Around 10% of eligible employees skip it entirely. That’s free money left on the table! And let’s not forget the parents supporting adult children at the expense of their own retirement. One stat that floored me: 23% of parents give their adult kids $600 a month, while only saving $490 for themselves. Over 20 years, that could mean sacrificing $300,000 in potential growth.

The Hidden Cost of Early Withdrawals

Pulling money out of your retirement account before age 59½? You might as well hand half of it to the IRS. Between federal and state taxes and a 10% early withdrawal penalty, you could walk away with just 50-60% of what you originally had.

We ran the numbers: a $100,000 withdrawal today could’ve grown to $600,000 over 30 years at a 6% return. That’s the power of compound growth—and why you want to leave those retirement funds untouched if possible.

Sure, there are exceptions for things like education or first-time home purchases, but those withdrawals are still taxed. So use caution and think long-term.

Withdrawal Strategies That Actually Work

One of the most important parts of retirement planning is determining how you’ll draw down your portfolio. We recommend sticking to sustainable withdrawal rates:

• Ages 50–60: 3%
• Ages 60–65: 3.5%
• Ages 65–70: 4%

Don’t fall into the trap of thinking you can safely withdraw 10% annually just because the market might return that in a good year. Markets fluctuate, and down years early in retirement can wreck your plan.

Tax Efficiency Can Make or Break Your Plan

Many people wait until RMDs kick in to access their traditional IRAs, but that can lead to massive tax bills later. Instead, take advantage of your lower tax brackets in early retirement. Strategic withdrawals or Roth conversions now can mean less tax pain in the future.

If you have a mix of tax-deferred, taxable, and Roth accounts, you have flexibility. Use that flexibility to create a tax-smart drawdown plan that supports your long-term goals.

Don’t Underestimate Inflation or Sequence Risk

A 3% annual inflation rate may not sound like much—until you realize it cuts your dollar’s value in half over 20 years. And we’ve seen 7-9% inflation in recent years, which puts even more pressure on your savings.

Then there’s sequence of return risk—when the market dips early in your retirement and you’re forced to sell investments to generate income. That combination can drain your portfolio faster than you think. The fix? Keep a cushion of safe money, like cash or CDs, to draw from during those rough market years.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Avoid Wealth Busters appeared first on ROI TV.