Is your nest egg intact?

Money in, money out.

The idea of balancing the two seems simple enough ... but it's not. In speaking with many of our clients, one thing is clear: It's hard to plan for retirement when dealing with so many unknowns. 

How long will I live? How big of a nest egg will I need to live comfortably during my golden years? And, when I begin drawing from my retirement funds, exactly how much money should I take out each year?

Truth be told, there's really no universal answer. Many wealth managers and financial planners adhere to something called the 4% Rule, which suggests annual withdrawals of no more than 4 percent during the retirement years. But, as this article from USA Today suggests, 4 percent is not a magic number. It's simply a starting point. 

When we sit down with clients and prospects, we discuss future goals. Our mission: To gain a better understanding about the type of lifestyle they hope to enjoy in retirement. We talk about how a million dollars in assets can produce $40,000 annually under the 4% rule. We also stress that most people's investment horizon is longer than they think. To have a chance at portfolio growth, most accounts are heavily skewed to equities due to today's low interest rate environment. 

Presently, the average retirement age in the United States is 62 -- but life expectancy rates are on the rise. A woman who retires at 62 can reasonably assume she'll live another 20 years (or more!). A man will likely live another 14. Naturally, if we're all living longer, we all need to keep our nest eggs reasonably in tact for a greater stretch of time.

Another consideration? A lot of us don't have pension plans, which were a much more reliable 'safety net' for past generations. That's a huge chunk of money that many younger Americans simply won't have access to. 

Ultimately, the best advise I can give is to work with a qualified financial advisor who can help you with your individual retirement goals. The Haley & Summers team has more than 47 years of combined market experience.

Jeff