Rules of thumb exist everywhere. Sometimes, these rules can be incredibly helpful, like when you’re cooking a delicious dish. In other cases, like when you’re planning for retirement, these rules can become incredibly harmful.
Everyone’s retirement is unique, and although these rules come from a good place, they often cause more harm than good. With that in mind, here are some rules for retirement you can break:
Rule: you need a million dollars for retirement
Having a million dollars saved up for retirement sounds great in theory for almost everyone. But the truth is that this goal can be overreaching for some, and fall short of the mark for others.
Instead of relying on a rule of thumb, you should come up with a retirement road map that anticipates your exact spending needs. For instance, if you’re planning to have an active retirement, that’s just one instance where your retirement costs can creep above average recommended amounts.
Rule: plan for retirement until age 80
Although the average lifespan is 76, this is another one of the rules for retirement you can break. According to the Social Security Administration, one out of every four 65-year-olds will live past age 90, and one in ten will live past age 95. Rather than planning for retirement based on this rule of thumb (and being pessimistic), you’d be better served in most cases by conservatively planning for longevity.
Learn more about the rules for retirement you can break
At LexION Capital, we realize that everyone’s retirement is just as unique as their life story. Rather than relying on rules of thumb, we work individually with each client to craft a portfolio based on their retirement goals and needs. If you’d like to learn more, schedule a conversation with one of our fiduciary advisors today.
