The Average Is Not Enough!

Paul K. Dunn
May 20, 2017
2 min read

The 95% of people that rely on employers and government retirement plans, will run out of money in 5-6 years or less.

Do you know how many years $350,000 would last in your retirement?

The rule is, that retirees are supposed to be able to survive on 80% of their pre-retirement income, due to the fact that most retirees have paid off their biggest liabilities (mortgage, car note etc) by the time retirement rolls around.

Lets take $50,000 as your earnings for example. 80% of $50,000 = $40,000 a year for expenses.

If you saved $350,000 for retirement and you need $40,000 a year for expenses, your money would be gone in a little over 8 years.

$50,000 (income)

80% of $50,000 = $40,000 a year for expenses in retirement.

$350,000 (retirement savings) / $40,000 = 8.75 years.

What will you do after your money runs out?

The frightening thing about it, is that $350,000 is more than 3 times higher than what the average American actually saves for retirement.

The average American's 401(k) balance

According to fool.com (The Motley Fool)

"The average American's 401(k) balance in 2015 was $96,288. This is according to Vanguard's annual How America Saves report. While this study looks only at Vanguard's 401(k) accounts, with the fund company's approximately $400 billion in 401(k) assets and 3.9 million participants in plan sizes ranging from tiny to massive, it's safe to say that this study is a good cross section of American savers as a whole."

The Bottom Line is, THE AVERAGE IS NOT ENOUGH!

With this information in mind, would you take $350,000 over 8 years? Or a secure retirement plan, that guarantees an income that you WILL NOT outlive?

The above post is a part of our FREE Online Bootcamp Series To learn more - Click the banner below