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How much does retiring with $2.5M provide in annual income?

Do you know how much you need to retire? How much monthly income do you want in retirement and how long it will last? 

Once you know that number now we need to figure out the fastest way to get there. Let me break it down for you.

Assume the average American family needs $100,000 a year before taxes once in retirement to support their lifestyle. This means you would need $2.5M in investments to retire. 

So how do you get to $2.5M? Does what you’re currently doing have you on track to hit your retirement goals? 

3 types of investments

There are 3 standard types of investments: savings accounts, bonds, and stocks. Let’s compare how long it would take you to be able to save the needed amount of $2,500,000 to live off of $100,000 a year.

*Assume you start with $10,000 and invest $1,000 a year.

🏦Savings accounts average a .15% return, it would take you 1,029 years

🏦Bonds average a 4% return, it would take you 109 years

🏦Stock market averages a 10% return, it would take you 50 years 

My opinion is to invest in stocks through the good and the bad times, be consistent, and start as early as possible!

Why it matters who you choose to manage your money

Can I do it myself?

Sure you can do it alone and invest yourself but why would you? I don’t do my hair myself. I don’t service my car myself. I don’t make my own clothes. That’s not saying I couldn’t do it, I just don’t. Because other people can do it better and have access to tools that I don’t. Don’t make your retirement a hobby or something you do on the side. If you want play money, set aside money to invest yourself and then hand the bulk of your investments to a financial advisor.

What are their returns?

You could even hire Joe Schmo at the bank but why? All financial advisors are not created equal. When shopping for an FA make sure you ask them what their average returns are. Mikes are 16%. He consistently beats the market. Meaning more money for you in retirement.

What are their differentiators?

What are their differentiators? Are they using a portfolio from an old advisor that left and never changed a thing? Yuck, gross. Do they recommend the bank’s financial portfolio? Most do. Mike has created his own portfolio custom to him and for each client. It’s not a one size fits all strategy. Do they offer protection in the market? No one I know does, except for Mike. For example, while Tesla is down 20% his Tesla stock is up 14% because he has access to stock contracts.

What are their fees and how many clients do they have?

What are their fees? How many clients do they have? Some banks have their advisors managing hundreds of families. Yikes! Do you want someone who cares for your family or someone who considers you 1 of 400? Where there is a constant revolving door of clients and those at the bottom that don’t “have enough revenue” get booted to the call center. Yes, that actually happens at big banks and firms. My preference would be to work with someone who wants to help you grow your money and who treats their $25,000 clients with the same energy and respect as the $20M clients. Can you guess? I’m talking about Michael.

Don’t be afraid to reach out to learn more

If you don’t have a retirement plan filled out please message Mike on IG @michael.meschke or email [email protected] for a complimentary consultation. I’m not sure how many more clients he’s going to let me send him but our goal is to help as many people as possible to get you on the right track to wealth!

And because I can say it and he can’t, if you don’t, it will cost you millions! I promise you don’t want to miss out on an opportunity to work with Michael. 

*Disclaimer: this is not financial advice and is purely used for education. All opinions are my own.