Many retirees, and some on the cusp of entering their Golden years, may hear someone talking about our “Magic Number.” This post concerns the myths and realities of a retirement “Magic Number.” First, we’ll explore what “the number” is and how various analysts propose different sets of numbers to represent it.
Crucially, we’ll explore why (and how) with some financial examples—this is not a one-size-fits-all situation.
We’ll also talk about how various factors (like Inflation, Health care needs in retirement, Investment returns, and Lifestyle choices) can impact each person’s Magic Number differently.
Working Magic with Your Magic Number—understanding the Magic
As most Americans plan for their retirement, the thought of being financially comfortable versus being wealthy often factors into the equation. So the question, converted into magic numbers-lingo, would be something like this:…