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With that being said, a successful retirement account should do two things:
There are 3 major reasons why most Americans run out of money during retirement:
The recommended age to start saving for retirement is 25 years old. A 25-year-old who invests just $500 per month until age 65, with an average rate of return of 7.5%, will have $1,409,798. This will pay them $70,000 per year for 20 years.
Their retirement savings suffered due to underwhelming market performance, failing to meet their growth expectations. Additionally, they incurred losses during the usual ebbs and flows of the stock market.
The average maximum 401k contribution over the last 20 years was $17,376 per year.
An American worker who maxed out their 401k from ages 25 to 65 would have $4,082,777, paying them $204,000 per year for 20 years.
The average maximum IRA contribution over the last 20 years was $5,172 per year. An American worker who maxed out their IRA from ages 25 to 65 would have $1,215,246, paying them $61,000 per year for 20 years.
An American worker who maxed out both their 401k and IRA from ages 25 to 65 would have $5,298,023, paying them $265,000 per year for 20 years.
With the average married couple spending $50,000 per year after retirement, the recommended retirement savings amount is currently $1,000,000.
If we consider what inflation will be 20 years from now, the average couple will spend $85,000 per year after retirement. Therefore, the recommended savings amount would need to be $1,700,000 at that time.
To ensure that you have enough money to last throughout your retirement, we recommend having a 401k, an IRA, as well as a TDA (tax-deferred annuity).
Having a mix of retirement accounts does two things:
If your 401k is performing less than expected but your IRA and TDA are performing more than expected then you increase your chances of positive growth because you have more than one investment working for you.
A TDA (tax-deferred annuity) that has a zero percent floor protects your retirement investment from going into the negative during typical stock market downturns. This means that when your TDA grows with the stock market, you’ll receive all the returns. On the other hand, if your TDA loses money because of downturns, you can never go into the negative or suffer a loss to your principal investment.
The interest rate is based on a portfolio of securities that have been chosen by the annuity owner. Therefore, the value of this annuity fluctuates based on the performance of securities. This means that variable annuities have the possibility of greater returns but also run a higher risk of your principal investment losing money. Read More
Provides a guaranteed rate of return and has no risk of ever losing money.
Pays an interest rate based on the performance of a specified market index such as the S&P 500. The security of a fixed-indexed annuity allows investors to reap the benefits when the stock market performs well and protects their principal investment from going into the negative during market downturns. We strongly recommend diversifying your retirement savings with a fixed-indexed annuity for maximum growth. Read More
Ensure a secure retirement by scheduling a free consultation with our experts.
We help you calculate how much you’ll need when you retire. We base this calculation on your preferred retirement age, your life expectancy age, and what your expected expenses will be after retirement.
We break down how much you need to invest to make sure you have the recommended amount by the time you retire.
We provide you with a personalized retirement analysis that shows you which companies will give you the highest rate of return.
We walk you through opening a high-producing retirement account if one of the following situations applies to you:
The best part is ALL of our consultation sessions are COMPLIMENTARY. To make sure that you’ll have enough money when you retire, simply schedule a free consultation with one of our retirement experts.
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