Open any financial publication or scroll through your favorite news feed, and you're bound to see headlines like: "Here's How Much You Need to Retire in 2025" or "The Average 401(k) Balance by Age." These articles often suggest tidy, round numbers as savings benchmarks. But do these numbers truly matter if they don't reflect your unique lifestyle?
Retirement isn't about hitting a national benchmark; it's about knowing your personal "number" – the amount you need to live the life you envision. Everyone's situation is different, and your retirement number depends on your lifestyle, expected spending, and income sources.
Here’s a quick guide to personalizing your retirement plan:
- Define Your Expenses: What do you plan to spend monthly or annually in retirement?
- Assess Debts: Will your mortgage or loans be paid off?
- Plan Activities: Do you want to travel or support family?
- Stress-Test Your Plan: Have you considered market downturns or unexpected costs?
- Evaluate Social Security: Understand how it fits into your broader financial plan.
Think of your retirement as a three-legged stool, with each leg representing a crucial income source:
- Social Security: A reliable but often overestimated source.
- Employer Pensions: If available, these can provide a stable income stream.
- Personal Savings/Investments: Essential to fill any gaps.
If one leg is short or missing, the stool wobbles, highlighting the importance of a balanced approach.
Alternative Perspective: Not everyone can rely on pensions, making personal savings even more critical. If you do have a pension, it might not cover all your needs, so filling in the gap with your savings is essential.
Additionally, consider tax diversification. Roth accounts, for instance, offer tax-free withdrawals in retirement, which can be strategically beneficial.
What to Look for in Your Financial Team
When searching for a financial advisor, seek more than just investment guidance. Look for a team that can help you visualize your ideal retirement, beyond the national average.
- Goal-Oriented Approach: Your financial team should focus on your goals, not just your balances.
- Comprehensive Planning: Look for tax-efficient withdrawal strategies, income management, and charitable planning.
- Long-Term Partnership: Choose a multi-generational team that can support you throughout every phase of your retirement journey.
Your retirement number should be unique to you, aligning with your goals and resources. If you’re not sure, partnering with the right financial advisor can help craft a personalized strategy.
- Actionable Tips:
o Start by journaling your retirement vision.
o Consult with a financial advisor for a customized plan.
o Regularly update your strategy as your goals evolve.
Ready to take the first step towards a personalized plan? Reach out to the Integrated Wealth Advisors team to discuss your unique retirement goals.
Chad Sigmon, CFP®
Financial Planner, Managing Partner
IntegratedWealthAdvisors.com
20 W Market St Suite 1 Leesburg, VA 20176
1919 Gallows Rd Suite 100 Vienna, VA 22182
(571) 271-7192
Chad Sigmon is a Financial Planner with, and offers securities and investment advisory services through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial. LPLE and LPL Financial are not affiliated with Integrated Wealth Advisors or Prudential.