Food for Thought: How much is enough? How much of a nest-egg do you need? The least examined aspect of retirement is that once you retire, your financial picture completely changes. After 30-40 years of focusing on growth, you now have to change strategy from a growth to an income machine. Retirement is no longer your parent's retirement. Unlike them, you will live for another 25-40 years in retirement; probably longer than you worked. Think about that: your nest-egg may have to last longer than you worked to accumulate it. 25-40 years with no steady income, no bonus, no cola, no promotions. 25-40 years of consistently having to make the right investment decisions. But it will be a joyous 25-40 years of carefree, never-ending play, endless travel, new cars, new homes, parties and perfect health. … and never an investment loss or a bear market. Never a need to move the needle off the childhood dream of racing the Predator from Syracusa to Gozo with a reefer full of Peroni. If the above sounds like you, here is a prioritized list of current concerns:
The biggest financial concerns of wealthy investors:
Concern about financial security in retirement 51%
Concern about portfolio tax strategy 46%
Concerned about a bear market 42%
Concerned about a long-term estate plan 40%
Concern about spending too much 38%
Concerned about health 38%
Concerned about college funding for children 33%
Concerned that children will grow up spoiled 31%
Concerned about keeping up with others in my circle 27%
Concerned about my disorganized personal finances 26% |