Do I Really Retire When I Hit the Magic Nest Egg Amount?

What is Your Magic Nest Egg Amount?

Retirement PlanI am sure most of you have seen the clever ads on television where the person is carrying a large orange sign showing the exact dollar amount they need to accumulate in their retirement fund to begin their retired years in a secure status.

It would be wonderful if we could fine tune the process to come up with the exact amount of the nest egg, wouldn’t it? It reminds me of the little old lady tax client who told me 30 years ago, when I was practicing in the Chicago area, that she just wanted enough to live on until she took her last breath so as not to be a burden on her children.

I moved away, so I don’t know for sure that she accomplished her goal, but I think she did because of the very modest life style she enjoyed.

Lifestyle is the Key to the Formula

Actually, lifestyle is the key to the formula as to the amount one is going to need in their retirement years. I think I was successful in teaching my children that anyone can expand their standard of living (the amount of money they “need” each month to cover their lifestyle). The really smart person is the one who can restrict their spending to allow for a monthly allocation to their retirement/savings accounts.

2 Key Concepts for Accumulating Your Nest Egg

  1. If you learn early in life to live within your means and to save some money each month, you will greatly increase your odds of having MORE than enough to live a comfortable life when you elect to “hang it up” for the last time.
  2. Also, if you develop a career which you truly enjoy, there is a great probability that you won’t want to retire when you have reached the “magic” number that your financial planner has targeted for you.

Plan for the Future

The key to success is enjoy the journal of life in the career of your choice and accumulate plenty of invested assets in a diversified portfolio, which will generate more than enough for you and your spouse to enjoy the nicer things of life.

Then leave a nice inheritance for worthy children and grandchildren to develop an estate which can be handed down to future generations of your family members. But remember that it is also nice to help the children and grandchildren with educational costs and down payments on their first homes — as long as they appreciate it and don’t expect it.

A gift from a “warm hand to a warm hand” is better than from the grave.

Stay active when you retire and enjoy a long sunset.

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