Tuesday, August 9, 2022
Tuesdays at Main Beach LIVE! 6pm "Click Here"
Subscribe to Guide
No Result
View All Result
Hamptons.com
  • Live Cameras
    • All Live Cameras
    • Live! Weather Cams
    • 39A Corner
    • Main Beach
    • South Ferry
    • Coopers Beach
    • Southampton Village (South)
    • Southampton Village (North)
    • Southampton Village (Hildreths)
    • Downtown Circle Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach
    • Ponquogue Beach
    • Ponquogue Bridge
    • Shinnecock Fishing Dock
    • Village Main Street
    • Downtown Sag Harbor
    • Windmill Beach Sag Harbor
    • Foster Memorial Beach
    • Conscience Point Marina
  • Public WiFi
  • Happening
    • Arts
    • Community
    • Dining
    • Entertainment
    • Kids
    • Recreation
    • Real Estate
    • Events Calendar
    • Post an Event
    • Gallery
    • Spotlight
  • Real Estate
    • Open Houses
    • Search Sales
    • Search Rentals
    • Recorded Sales
    • Title Insurance
  • Live Cameras
    • All Live Cameras
    • Live! Weather Cams
    • 39A Corner
    • Main Beach
    • South Ferry
    • Coopers Beach
    • Southampton Village (South)
    • Southampton Village (North)
    • Southampton Village (Hildreths)
    • Downtown Circle Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach
    • Ponquogue Beach
    • Ponquogue Bridge
    • Shinnecock Fishing Dock
    • Village Main Street
    • Downtown Sag Harbor
    • Windmill Beach Sag Harbor
    • Foster Memorial Beach
    • Conscience Point Marina
  • Public WiFi
  • Happening
    • Arts
    • Community
    • Dining
    • Entertainment
    • Kids
    • Recreation
    • Real Estate
    • Events Calendar
    • Post an Event
    • Gallery
    • Spotlight
  • Real Estate
    • Open Houses
    • Search Sales
    • Search Rentals
    • Recorded Sales
    • Title Insurance
No Result
View All Result
Hamptons.com

Calculating The Real Retirement Number

Rocco A. Carriero by Rocco A. Carriero
May 2, 2013
in Real Estate
Home Real Estate

The “million dollar” question many of those preparing for retirement ask themselves is simply stated but not necessarily easy to answer – “how much money do I need to save to secure a comfortable retirement?” In some circles, this is referred to as “the number” – that magical figure that tells pre-retirees how prepared they may be.

A recent survey from Ameriprise Financial found that working Americans ages 50 to 70 with at least $100,000 in investable assets estimated that what they needed to comfortably retire was, on average, $930,000.*

But what does that number really mean? How important is it? What assumptions must you make to arrive at a number – and how many rapidly changing factors impact your number? Preparing for retirement is about much more than arriving at a number, but some calculation is necessary.

Calculate Your Retirement Expenses: When determining how much you’ll need to save for retirement, it’s helpful to think in terms of how much income you’ll need to withdraw to cover expenses. But projecting future spending is an inexact science at best. Some expenses might go away (mortgage, FICA taxes, retirement plan contributions), but you may also have more time and energy to spend money on the things you need and want to do in retirement. There are also expenses that could greatly increase in retirement like medical costs.

Using your current spending habits as a starting point, draw up a realistic list of anticipated living costs in retirement. There are two primary categories to review in this regard:

Essential Expenses: These are the required costs associated with daily living – food, shelter, utilities, transportation, insurance (health, life, long-term care) and taxes – that most likely will persist throughout retirement.

Lifestyle Expenses: This is the “fun” part of retirement – interests that you want to pursue such as golfing, travel, owning a vacation property or starting a business. To make these lifestyle choices a reality, enough money needs to be in place to finance them. But separating out lifestyle expenses from required expenses can help you prioritize using funds from your nest egg too quickly and jeopardizing your long-term financial security. Note that spending on lifestyle needs can be adjusted as needed throughout retirement, as these are considered discretionary expenses.

Match Assets To Expenses: Rather than trying to assess whether a single lump sum amount is sufficient to meet income needs in retirement, a more practical approach may be to match specific assets (or sources of income) to various expenses.

The highest priority is the essential expenses category. Your goal should be to enter retirement with a virtual guarantee that required living costs are going to be met without interruption no matter how long you live. There are two clear sources of guaranteed income for retirement: Social Security and a defined benefit plan – when available. Of course if you’re still far from retirement, Social Security shouldn’t necessarily be viewed as a long-term guaranteed source of income due to potential changes as budget discussions unfold in Washington. If these income sources don’t produce enough income to meet required expenses over time, additional income could be generated in another way such as an annuity providing a guaranteed income stream. Note that using this approach, future income is not subject to the variability of the markets 1 .

Your remaining available assets can be used to fund lifestyle expenses. You may choose to invest this money more actively with a strategy of drawing down assets over time using a sustainable withdrawal rate.

A true number may be elusive, but using this process, you may have a better sense of what your ultimate savings goal is. It may be useful to set multiple goals – or “numbers” – to reach enough to cover essential expenses and then lifestyle expenses. Beyond these goals, you might also consider the amount you’ll need to cover unexpected expenses in retirement and to leave a legacy.

Planning financially for retirement can be complex. Taking the appropriate steps to calculate your retirement income needs is a great first step, but with an economic and political environment that is constantly evolving, it can become even more complicated as you near retirement. Consider working with a financial professional who can help you work toward your short- and long-term goals.


* The Retirement Check-In® survey was created by Ameriprise Financial utilizing survey responses from 1,000 employed Americans ages 50-70. All respondents have investable assets of at least $100,000 (including employer retirement plans, but not real estate) and are planning to retire at some point. The survey was commissioned by Ameriprise Financial, Inc. and conducted via telephone interviews by Koski research from October 31- November 14, 2012. The survey was conducted among a targeted sample of households. Cell phones were approximately 25 percent of the sample. The margin of error is +/- 3 percentage points.

1 However, inflation risk may remain, depending to some extent on the features of the specific annuity.

Annuities are not government or FDIC insured. All guarantees are based solely on the continued claims-paying ability of the issuing company.

Ameriprise Financial cannot guarantee future financial results.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.

Previous Post

Sumptuous Flowers For Hamptons Spring And Summer Tables

Next Post

Hamptons’ Artist Eric Fischl: “Bad Boy: My Life On And Off The Canvas”

Rocco A. Carriero

Rocco A. Carriero

Rocco is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Southampton, NY. He specializes in fee-based financial planning and asset management strategies and has been in practice for over 20 years. Advisors is licensed/registered to do business with U.S. residents only in the states of NY, NJ, TX, MA, PA, NC, NH, UT, NV, CA, NM, WA, VT, MS, MD, RI, FL, MO, SC, GA, MN, CT, AZ. Ameriprise Financial Services Inc., and its representatives do not provide tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.

Next Post
Hamptons’ Artist Eric Fischl:  “Bad Boy: My Life On And Off The Canvas”

Hamptons' Artist Eric Fischl: "Bad Boy: My Life On And Off The Canvas"

ADVERTISE

SEARCH ARTICLES

No Result
View All Result

Categories

  • Arts (2,180)
  • Community (1,935)
  • Dining (814)
  • Entertainment (985)
  • Featured (305)
  • Gallery (2,154)
  • Kids (52)
  • Real Estate (652)
  • Recreation (1,605)
  • Spotlight (38)
  • Traffic in the Hamptons is Time Sensitive

Traffic in the Hamptons is time sensitive. Going east from 6 a.m. to 10:30 a.m. and west from 4 p.m. until 8:30 p.m. has become quite an ordeal. The initial expansion of “Highway 39” back around 2006-2007, in which the two-lane road was expanded to four and in some places six lanes, no longer is alleviating the traffic flow.

Read the full article at Hamptons.com (Link in Bio) #traffic #hamptons
  • Sixty/Something: Solid Gold Rent

My first full-time year in the Hamptons started as a weekend and lasted a decade. I paid rent to a host of folks thinking I’d be moving back to NYC. Somehow the east end helped me transition to a very happily remarried east end guy.

This tale all started with me, a divorced dad having a fateful ride to Joe Shaw’s home as a favor to pick up a deposit on his sailboat. That day ended with me buying his sailboat. It was an on the spot spur of the moment epiphany moment. I knew nothing about sailboats or east end bays.

Read the full article at Hamptons.com (Link in Bio) #hamptons #community
  • Bideawee Animal Rescue: “Stay Awhile”

It’s been more than two years since the start of the pandemic where there was a significant increase in animal adoptions, known as the “pandemic puppy craze.” Now, animal shelters across the country have been experiencing a lull in adoptions.

Bideawee is one of the country’s oldest and most respected animal welfare and pet adoption organizations. They have locations in New York City, Wantagh, and Westhampton, and they are encouraging the community to consider bringing a deserving and lovable pet into their home. @bideawee

Read the full article at Hamptons.com (link in Bio) #bideawee #adoption #animaladoption #adoptdontshop #community
  • A Perfect Blend of Classic Southampton History and Luxurious Modern Design

A very rare find in the heart of Southampton Village this stylish gated farmhouse built in 1800 is a seamless synthesis of historic features and 21st century finishes, furnishings and amenities. Transformed by Bremer Designs, its owner, with a complete renovation, the home has true character. Wide plank pine floors and original fireplaces speak to the home’s history, while central air, updated electric and many other upgrades provide up to the minute amenities all expressed with the owner’s impeccable style. No detail has been left unconsidered and the workmanship is of the finest quality. @hamptonsrealestate @djida_oppenheim

Read the full article at Hamptons.com (Link in Bio) #southampton #realestate #hamptonsrealestate #luxuryrealestate #saunders #hamptons
  • Growing Up Getty Book Publication Celebration at Canoe Place Inn

On Friday evening, July 29th  the beautifully restored Canoe Place Inn in Hampton Bays was the setting for a celebration of the publication of Growing Up Getty: The Story of America’s Most Unconventional Dynasty by James Reginato. Hamptons.com spoke with the author about his background and his new book. Mr. Reginato has a distinguished career in publishing, having been with Vanity Fair Magazine for 15 years. Previously, he served as features editor of W Magazine. @canoeplace @jamesnreginato

Read the full article at Hamptons.com (Link in Bio) #author #hamptonbays #hamptons #canoeplace
  • As Local as It Gets, Sundaes on Main Now Open

You may have noticed a new frozen yogurt shop opened on Main Street in Bridgehampton. At first glance, you think surely it must be an NYC business making a run for Hamptons customers. How wrong you would be—”Sundaes on Main” is as local as it gets. @sundaes_on_main

Read the full article at Hamptons.com (Link in Bio) #frozenyogurtshop #sundaes #sundaesonmain #bridgehampton #local #hamptons
Facebook Twitter Instagram Youtube
Hamptons.com

Saunders Broadcasting Corp.

Phone: 631-405-3902
Email: [email protected]
Facebook: Facebook.com/HamptonsOnline
Twitter: @Hamptons
Instagram: @HamptonsOnline

Contact Us

Happening in the Hamptons

  • Arts
  • Community
  • Dining
  • Entertainment
  • Featured
  • Gallery
  • Kids
  • Real Estate
  • Recreation
  • Spotlight

Subscribe

Get daily news updates to your inbox!

Subscribe to our mailing list to receives daily updates!

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us

No Result
View All Result
  • Live Cameras
    • All Live Cameras
    • Live! Weather Cams
    • 39A Corner
    • Main Beach
    • South Ferry
    • Coopers Beach
    • Southampton Village (South)
    • Southampton Village (North)
    • Southampton Village (Hildreths)
    • Downtown Circle Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach
    • Ponquogue Beach
    • Ponquogue Bridge
    • Shinnecock Fishing Dock
    • Village Main Street
    • Downtown Sag Harbor
    • Windmill Beach Sag Harbor
    • Foster Memorial Beach
    • Conscience Point Marina
  • Public WiFi
  • Happening
    • Arts
    • Community
    • Dining
    • Entertainment
    • Kids
    • Recreation
    • Real Estate
    • Events Calendar
    • Post an Event
    • Gallery
    • Spotlight
  • Real Estate
    • Open Houses
    • Search Sales
    • Search Rentals
    • Recorded Sales
    • Title Insurance

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us