Rob Jacobs, Ph.D., CRPS™, CPFA · White Pine Financial

The Retirement Income Decoder: Simplifying the Numbers

How much do you need to save to retire comfortably?

What would you need to put away today to retire on $100K a year without touching your principal?

Those are heavy questions that can overwhelm any of us, especially if we don’t know how the big numbers really break down.1

And if you’re like most folks, navigating the maze of retirement planning can feel daunting.

Here’s the good news. You’re not alone.1

It’s not too late to get your retirement goals on (or back on) track, and you don’t need a complicated plan to do it.

The key isn't necessarily a complex strategy; it's about having a clear understanding of the numbers and what they mean.

With the right knowledge and planning, you can build a retirement fund that will allow you to live comfortably—without potentially depleting your nest egg.

In this Visual Insights Newsletter, we'll break down an example of how much one would need to save to generate $80K, $90K, or $100K in annual income after they stop working.

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Retire on $100K a Year
Without Touching Your Nest Egg?

ASSUMPTIONS

To run the numbers, here are the assumptions:2

  • You start with $0 in retirement savings.
  • You start saving at age 25, and you retire at 65, saving for ~40 years.
  • Your retirement investment will earn ~6% a year while you work and ~3% a year when you retire.
  • Your nest egg will include some combination of stocks, bonds, and cash, getting more conservative the closer you get to retirement.

We’ll show a few different scenarios for 80, 90, and 100K in retirement income. These are conservative estimates, and they don’t factor in inflation, taxes, and other income you may earn in retirement.2

SCENARIO #1

$80K Annual Income in Retirement

If you want to retire on $80,000 a year without drawing down on the principal, you need to:

  • Save at least $1,340 a month every year until you retire
  • Have at least $2.6 million total in your nest egg by the time you’re ready to retire2

SCENARIO #2

$90K Annual Income in Retirement

If you want to clear $90,000 a year as a retiree without touching your nest egg, you need to:

  • Save at least $1,506 a month every year until retirement
  • Have at least $3 million total in your nest egg by the time you retire2

SCENARIO #3

$100K Annual Income in Retirement

If you want to draw $100,000 a year without touching your original savings as a retiree, you need to:

  • Save at least $1,674 a month every year until retirement
  • Have at least $3.3 million total in your nest egg by the time you’re ready to retire2

It pays to be early and flexible when it comes to something as important as your retirement.

FINANCIAL LESSON:

How to Retire the Way You Want With Less Fear & Stress

Surprised by the numbers you've seen today?

Rethinking your retirement game plan—or wishing you had one to begin with?

Remember, the figures and steps outlined are just a guide, not one-size-fits-all answers.

Your journey might look different. Maybe you started saving earlier or later, or perhaps your nest egg is growing at a different pace.

If you're already a client, we've tailored a plan just for you. But plans and goals change, so it might be time to revisit and tweak if needed.

The golden rule? The sooner you start planning, the better. Not only do you unlock the magic of compound interest but you also gain more room to pivot and adapt.

It pays to be early and flexible when it comes to something as important as your retirement.

Life's curveballs can knock us off track—that's a given. Yet, falling off doesn't mean staying down.

We can always recalibrate and aim again, especially with expert advice on our side. So, let's crunch those numbers, set or reset our course, and turn those retirement dreams into real plans.

 

    Rob Jacobs, Ph.D., CRPS™, CPFA

    White Pine Financial

    https://www.whitepinefinancial.com

    (801) 839-5730

 

P.S. Sign up for my emails. My subscribers get my best insights!

Rob Jacobs, Ph.D., CRPS™, CPFA

White Pine Financial

Not receiving our newsletter?

Get insightful info on finances and more in your inbox every month with the

VISUAL INSIGHTS NEWSLETTER

Rob Jacobs, Ph.D., CRPS™, CPFA

White Pine Financial

https://www.whitepinefinancial.com

robert@whitepinefinancial.com

(801) 839-5730

Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

The information provided is intended for general informational and educational purposes only. It is not intended to be and should not be construed as financial, investment, tax, legal, or other professional advice. The contents do not constitute an offer to sell or a solicitation of an offer to buy any securities.

White Pine Financial is not providing personalized financial advice through this content. The information presented is based on sources we believe to be reliable; however, we do not guarantee its accuracy or completeness. All information expressed herein is subject to change without notice and should be independently verified for timeliness, accuracy, and suitability.

Investment involves risks, including the potential loss of principal. Before making any investment, a thorough analysis and consideration of your specific financial situation, objectives, and risk tolerance are recommended. Please consult with qualified financial, legal, and tax professionals regarding your individual circumstances before making any decisions.

Past performance is not indicative of future results. No current or prospective client should assume that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly will be beneficial, profitable, or equal to corresponding indicated performance levels.

White Pine Financial is a registered investment advisor. For more information about our advisory services, please contact us at team@whitepinefinancial.com.

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Rob Jacobs, Ph.D., CRPS™, CPFA

White Pine Financial

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