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Achieve Financial Security in Retirement

What is the secret to great outcomes in retirement? If you are concerned about having enough money to fund your retirement, there are some ideas that will ensure that your golden years are financially successful.

“Good thoughts are no better than good dreams unless they be executed.”

Ralph Waldo Emerson

Most people do think and many worry about how they will pay bills during their retirement years.  

Craig Israelsen, PhD studied the lifetime experience of 34 different investors using the following criteria. 

He defined investor lifetimes as a 60-year window of time which included 35 years of accumulation and 25 years of distribution.   The investment period began at age 35 and ended at age 70.  The retirement began at age 70 and ended at age 95, when death is assumed.  

The first retiree began investing at age 35 in 1926. Retirement began in 1960. The 34th and last investor began investing in 1961 and retired in 1986.

All 34 invested 8% of their income each year into a diversified portfolio of 60% stocks and 40% intermediate term bonds (fixed income).   The average 35 year rolling rate of investment return from 1926-2018 was 8.95% after adjusting for an assumed expense of 1% annually for fees to include commissions and management expenses.

In every period each retiree – all 34 of them – made it to age 95 with plenty of money. The average starting amount at age 70 was $1.06 million. The average ending balance after 25 years of retirement was $2.3 million.

The starting income was held constant at $50,000 per year and it was increased by 1.5% annually.  The average total amount withdrawn for each retiree was $3.29 million! The assumed withdrawals were based on the IRS Required Minimum Distribution (RMD) method governing IRA’s (Individual Retirement Accounts).

It is amazing what can happen when people plan for retirement and maintain discipline throughout their lifetimes.

Unfortunately that is not what happens for most people.

In future comments Curran Wealth Management will discuss reasons why so few people achieve retirements as secure as they would  have hoped.

Please check with your Curran Wealth relationship manager, or 
contact Curran Wealth Management if you have any questions. 
518.391.4200 info@curranllc.com

The material contained in this article is for educational and informational purposes only.  The information herein is considered to be obtained from reference sources deemed reliable, but no representation or warranty is made as to its accuracy or completeness. It is not, and should not be regarded as “investment advice” or construed as a “recommendation” or an offer to buy or sell a security.  CIM, LLC does not provide tax or legal advice.  No one connected with CIM, LLC can ensure tax consequences of any transaction.  The information contained in this article may not apply to your personal circumstances.  Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation.