Retirement Strategy Guide


1. Know How Much You Need For Retirement

Financial planners typically use the 4% Rule to determine the amount you need for retirement. The 4% rule states that if you withdraw 4% of your savings during your first year of retirement and adjust subsequent withdrawals for inflation, your savings should last 30 years. This means that if you manage to save 25 times more than what you expect to spend each year in retirement, you're in good shape. So if you determine you'll need $40,000 a year in retirement, your goal should be to amass $1 million before you stop working. While the 4% rule isn't perfect, it's a solid starting point for seeing whether you're set to retire or whether you should really push yourself to work an extra couple of years.

_______________________     X    25 =          ________________________

Amount Needed Per Year                   Total Needed in Retirement

2. Know How Much You Should Be Saving

Financial Planners suggest that you should save about 10-20% of your net income for retirement if you are starting around age 30. You should also have also have an emergency savings that can satisfy at least 6 months of your bills.

If you start saving at age 25 and plan to retire at age 65

You should save 10% gross income

If you start saving at age 35 and plan to retire at age 65

You should save 15% gross income

If you start saving at age 45 and plan to retire at age 65

You should save 27% gross income


3. Decide and Commit to a Plan

Behavior changes can be very difficult. You must decide on the type of lifestyle you want and invest accordingly. I, Joseph Cofield, can assist you with your projections with an index universal life policy. Below is a guide that you can use to determine how much you need to save for retirement. To use the guide, find your salary and determine the percentage you want to invest. The percentage can be a combination of your 401K and an index universal life insurance policy.

Find out more