Nearing Retirement

Do you have enough money to retire?

Fact #1: If you want $1,000/mo in retirement you will need $300,000 in savings. If you want $5,000/mo you need $1,500,000 (Assuming 4% annual withdrawal, 6% Annual Returns and 2% Inflation)

Fact #2: Rule of thumb is that you will need 80% of your pre-retirement income in retirement

Fact #3: The average 50 year old American has less than $43,000 in savings

Fact #4: 45% of Americans have nothing saved for retirement

Fact #5: 36% of Americans over 65 use Social Security as their sole source of income

Fact #6: Social Security is running out of money and will only cover 77% of its commitments by 2034

I don’t know about you but these statistics should be cause for concern.

This is why I created the NearingRetirement.Com website – to collectively (that means us together) travel down the road of building a retirement plan that is achievable and satisfying for everybody.

After a lot of reading and exploring, I’ve come up with the following 10 steps to retire happy when you may not have a whole lot of money, or a lot of time.

Here they are:

  1. Take inventory of assets & liabilities – What assets do you have (bank accounts, 401k, IRAs, Real Estate, Insurance Policies)? What liabilities do you have (Mortgages, Car Loans, Personal Loans, Health Care Debt)? What obligations to family do you have (Parents, Children, Spouse, Ex-Spouse)?

  2. Take inventory of yourself and your spouse – How old are you? What are the key ages that you need to know about for Social Security and Medicare? How is does your health and what your do affect your life expectancy?

  3. Define what retirement means to you – Quiet life reading novels? Living at the beach surfing every morning? Running a small business part time? Spending time with friends & family with occasional travel?

  4. Create 3 Scenarios for Retirement – a)Basic Needs to Be Happy, b)Basic Needs Plus Extras, c)Ultimate Retirement

  5. Calculate Income Requirements for each Retirement Scenario – What do you need the early part of your retirement when you are healthy and active? What do you need in mid-retirement when you are slowing down and aren’t as active? What do you need at the end of retirement?

  6. Calculate Income at Time of Retirement – Using the assets that you expect to have at your target retirement age, plus future revenue streams (Pensions, Social Security, Rental Income), how much income will you have?

  7. Analyze Gaps between Income at Retirement and costs of retirement scenarios – How far away from attaining your Retirement objectives are you going to be?

  8. Develop a Plan to Get You to Your Dream Retirement – This is the most important step of all. It is here that we explore ways to reduce the cost of your Retirement objectives while, at the same time, looking for ways to increase your retirement income.  We will explore all options including living in another country and making extra money using creative techniques.

  9. Execute the Plan (Shoot for your Ultimate Retirement) – Now it’s up to you. Follow your plan and get ready for what should be the best phase of your life.

  10. Make Course Corrections – The Ultimate Retirement may not be achievable for everyone but you should still go for it. As your plan unfolds, and you are not able to achieve all your goals, scale back to you next scenario.  The goal is to retire happy but if you can retire happier then that’s good too.
I will explore each of these steps in articles in my blog and include as many examples as I can find.  But remember, this is a community effort which means that your input will help to make this information more valuable to everyone.

Also, keep in mind that I am not a financial advisor.  I don’t know your specific situation and neither does anyone else on the Internet.  So use this information as educational material.  Always consult a professional that knows you and your situation before making any retirement decisions.

I truly hope that you find value in this site and encourage you to add your comments below, especially if you have suggestions to make it better.

To your Retirement Success,


7 comments on “Nearing Retirement

  1. Hello Steve
    Some very useful tips for retirement preparation

  2. This is so great thanks for sharing, many people get so caught up that they do not plan for those golden years which is such a burden for so many people because they fail to put a plan in place. What you are suggesting here is good because this is a great way to secure your future. Thanks again.

  3. Great article! Sadly, I’m pretty sure that by the time I’m 65, both social security and retirement will be terms of the past. I don’t expect to retire one way or the other because I literally work for fun and don’t really have any other interests. But overall, well written site and article. Even though I’m not the target market, it’s still a very interesting read.

  4. Hi Steve,

    It is so scary when you present the numbers and facts on how much people are ill prepared for this crucial stage in their lives.

    We tend to have this “invisible mindset” when we are young, which cause us not to seek the financial assistance necessary to live the rest of our days comfortable.

    I am looking forward to reading the rest of your articles!

  5. Hello and thanks for sharing this awesome post. Many don’t think about the day when they will retire if they live long enough. The sad thing however is that it seems like a lot of people let retirement sneak up on them so to speak. They just to don’t plan for those golden years. Your post is timely and I believe that as persons comes across your site it will have them doing some soul searching and thinking about when that day comes. Your post is just awesome.

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