$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.

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