Financial FitnessGeneral Information

Do I Have Enough To Retire?

By February 27, 2020 No Comments

There was a recent study done by TD Ameritrade that interviewed over 1,000 Americans in August of 2019, and 58% of the people surveyed believed that a retiree who has accumulated $1million in pre-tax investment accounts would be able to enjoy a comfortable lifestyle in retirement.

Let me show you how those numbers would work.

If you had $1 million in a retirement account that has never been taxed, let’s assume that you were pulling out a withdrawal of 4%.

That $1 million at 4% would generate $40,000.

Assuming you were in the 24% tax bracket for federal, and 6% tax bracket for state, that 30% in taxes on your $40,000 per year would translate into approximately $28,000 after-tax, assuming you had no other means of income.

Now, I’m not sure how many people can have a comfortable retirement on $28,000, with no other means of income, but apparently 58% of the people who were surveyed thought that a $1 million would be enough for a retiree to have a comfortable lifestyle in retirement.

These are just the types of conversations I have with clients every day.  If you want to look at your own retirement numbers, please make an appointment with Fortress Financial so that you don’t have to guess what your retirement will look like.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.