$5million & your piggy bank: financial planners’ standard target for retirement
January 14, 2008

“Mrs. Foster, you & your husband should save at least $5million for retirement…at least!”

[THUNK]

That’s my psychological (& literal) piggy bank passing out from that advice. Most all financial planners I met with last year suggested $5million be our retirement savings target (east coast).

What the SAM HECK do we need to save that amount for?! I’ll calm my drama-momma attitude … & attempt to answer with some calm. Feel free adding ideas to this list:

  • Longevity (age 100 to be commonplace)
  • Health care (allocate $150k-200k for health care costs excluding long term care)
  • Inflation
  • Housing (assuming a paid-in-full home, consider property tax per US Treasury)
  • Food
  • Fun (one trip annually)
  • With above factored in the equation — leaving $1k/mo for health care costs during retirement — our current retirement savings quest is $2.5million. It makes financial planners smirk but, although hefty it’s an aggressive goal that doesn’t leave my mental or literal piggy bank in shock.

    More from:
    FreeMoneyFinance writes on the $5million topic with an active discussion thread;

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reviewing one’s portfolio, investing money, & the duh factor
September 11, 2007

I meet with the administrator of our retirement plan tomorrow and look forward to nailing down:

  • what our monthly contributions should be to retire age 65 with 75% of current salary;
  • what our monthly contributions should be to retire age 65 with 100% of current salary (omg that seems nuts but heck why not know the number);
  • and the biggie: what our current allocations should be to achieve any or all of above.

I predict we have too many domestic equities (vs having at least some international stocks). But at this point I’m talking out the wazoo.

Considering one’s age & risk tolerance are key, sure. Yet it’s perspective and context that I crave from tomorrow’s discussion (a follow-up to this first meeting).

Beckoning to tomorrow’s planner:

Help us afford more than tooth picks & water during our sunset years!

More to follow post meeting manana.

More from:
Our retirement plan administrator TIAA-CREF

parents’ retirement planning & reality checks
August 10, 2007

Over 50% of American retirees will be wholly dependent on their relatives & welfare subsidies per Richard Paul Evans.

Regarding one’s parents, what are effective ways to plan for this? Surely it’s a matter of good communications with one’s folks, education on potential needs like senior healthcare, and taking incremental steps to prepare (and living within one’s means).

I’d rather have these potentially awkward talks with my parents now – and really enjoy our time on Earth (vs having high-octane financial stress at times when you’d rather be an emotional companion with them).