Tags: revenue | million | inadequate | retirement

Experts: $1 Million May be Inadequate for Retirement

By    |   Wednesday, 23 April 2014 01:34 PM

For years millionaire status represented rarified air.

But now a net worth of $1 million is no big deal, and it may not cover you through your retirement years, experts tell USA Today.

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks

"The good news is there are more millionaires," Richard Dragotta, a financial adviser for LPL Financial, told the paper. "Over 9 million people in the U.S. have $1 million or more."

The problem is that a $1 million portfolio might not throw off enough income to finance your spending needs in retirement.

"It translates into $40,000 to $50,000 [annually] in sustainable revenue," Joe Heider, regional managing principal for Rehmann Financial Group, told USA Today. "That is not that much money on an annual basis."

That amount would be sufficient for some retirees. "Everything is relative," Clarence Kehoe, executive partner at accounting firm Anchin, Block & Anchin, told the paper.

"For some people, I would think $1 million would be more than enough. For other people, some of these clients spend more than $1 million in a year. It depends on the person, their lifestyle and what they are used to."

Paul Merriman, founder of Merriman Wealth Management, writes on MarketWatch that if your investment portfolio is worth at least 20 times your current annual income, "you're probably at least in the 'maybe' category" for having enough retirement savings.

Among the steps he recommends taking in retirement planning is to determine whether your current income will meet all your anticipated retirement needs and whether you want to leave money for others when you die.

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks

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For years millionaire status represented rarified air. But now a net worth of $1 million is no big deal, and it may not cover you through your retirement years, experts tell USA Today.
revenue, million, inadequate, retirement
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2014-34-23
Wednesday, 23 April 2014 01:34 PM
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