The clock is ticking

Time to answer the million-dollar question: How much do you need to retire?

A common rule of thumb says you’ll need 70%-80% of your working income. No more commute and parking costs, expensive work clothes, lunches out. But other costs might go up – traveling the world is not cheap and neither are pricey hobbies like golfing.

But what if you don’t plan to retire? You’re part of the gang that’s waging war against mandatory retirement and want to keep on working. Great – more time to accumulate wealth.

And what if you want to retire early? Enough work! It’s time to travel, join a club, try new sports, volunteer or spend more time with family, especially those grandkids.

Do what you want, but crunch those numbers. How much money you’ll need in retirement depends on what you plan on doing – and let’s assume those plans will work out. When do you plan to retire? What kind of lifestyle are you after?

Time Horizon

Financial planning at this stage forces you to admit that the “long term” is almost here. After living through recessions, real estate booms and busts, bull and bear markets – it’s become obvious to you: what goes up will come down, but not on your schedule.

Time, alas, is a dwindling asset. For your investments, it means gradually moving to a more conservative (read: can’t afford-to-lose) portfolio. An independent financial advisor can walk you through a new strategy and introduce you to ideas that fit this period of your life.