Article
What Your Financial Advisor Won't Tell You
I realized how so many people are misinformed and they have absolutely no idea what they need to know when it comes to planning for retirement.
Last week, I was at an event with healthcare leaders from across the country. During a break, I met a gentleman who asked me about my work. We then began talking about healthcare, recruitment and retention, and retirement. He started to explain to me that all you need to do is draw 4% from your retirement plan and you’ll never run out of money.
As he spoke, I realized it was another example of how so many people are misinformed and they have absolutely no idea what they need to know when it comes to planning for retirement. I gently informed him that there might be a few points he wasn’t considering. Some of the things he missed were taxes, inflation, market losses, and major medical illness.
What happens when you take those things into consideration and then do the math? How much in pre-tax dollars would you need to save so that 4% would be enough to support of the average physician?
If you just consider taxes and inflation, you would need a nest egg in the six to seven-million-dollar range.
4% of six million is $240,000 per year. In retirement, you won’t have many deductions, so taxes would just about cut that $240,000 in half and inflation will double your living expenses every 20 years or so.
I haven’t even mentioned what would happen to that six million dollar nest egg if the market crashes like it did in ‘08 and ‘09 and you lose 40% of it.
Has your financial advisor told you about you any of this? Probably not. Oh and one more thing…even if the $240k were enough (and it isn’t)…how many physicians and key healthcare employees do you know who can save over six million dollars for their retirement? You probably don’t know very many, because there aren’t very many.
Want to find answers before it’s too late? Send an email to David@theAlemianfile.com, and ask for my free report. Put "Report" in the subject line and I will send it to you right away. Visit my website www.CapitalCrestFinancialGroup.com
Absolutely make sure you come back here next week for another edition of The Alemian file.
