What is my magic number?
My name is Derrick Glencer I am a Certified Financial Planner Practitioner™ with Raymond James and I define, plan and make “It” happen, financially speaking for Gen X Execs and Soon To Be Retirees and in general families/individuals looking for a more meaningful relationship with their financial advisor. Today we are going to discuss why asking “What is my magic number?” is actually the wrong question to ask when it comes to planning for your retirement.
Recently, a client reached out to me and she asked “What’s my magic number if I want to retire at 60”.
A lot of advisors often work under the model of you need this much money to retire, if you plan on a 4% withdrawal rate and earn 6% over the length of your retirement you should never run out of money. Done. Move on to the next person.
When you turn on TV or social media or perhaps your current advisor all you hear is why you need to know that number, and I think that’s interesting because that’s the one thing we can’t control.
There are so many variables going into it, like how much are you saving, what is your rate of return, how do you spend and budget your money…a lot of factors.
I have a client and when she retired, she had just a few hundred thousand dollars, is that your magic number? Absolutely not, but it works for her. She has no debt, she lives on a tight budget, she doesn’t eat out, she travels a bit and has a really rich life.
Do you want your entire working life distilled our lives down to one number, would that define you? Because it doesn’t work that way, at least not with my clients. My clients have stories, and each one is unique. Some have kids, some don’t, some are married some are divorced, some are widowed some are couples, some can budget and some can’t, some have lots of money others have less. They aren’t a number and there isn’t a one size fits all solution to your situation.
My name is Derrick Glencer I am a CERTIFIED FINANCIAL PLANNER™ Practitioner if you enjoyed this content you can book a no obligation consultation via Calendly at:
Or directly through email at:
derrick.glencer@raymondjames.com
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Thank you very much and go make it a great day!
Any opinions are those of Derrick Glencer and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice Investing involves risk and you may incur a profit or loss regardless of strategy selected. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP®(Plaque design) and CFP®(with flame design) in the U.S., which awards to individuals who successfully complete the CFP Board’s Initial and ongoing certification requirements.
