You May Be Able To Retire Sooner Than You Think

Wes Moss on Forbes.com

A recent National Institute on Retirement Security report found that 79% of Americans agree that there is a retirement crisis. It also showed that over half of Americans are concerned they won’t be able to achieve financial security in retirement. These findings should not be all that surprising given that the study is literally named “Retirement Insecurity 2024.”

Retirement insecurity may be a scary headline, but with self-discipline, some savings, and time, happiness and financial freedom may be within your reach sooner than you think.

The Framework

What decision could help you retire sooner than you thought possible? Let’s start with some math and set the parameters. Going back to 1928, the S&P 500 averaged an annual return of 11.7%. For the sake of this illustration, we will assume an 8% rate of return.

In research conducted for the book You Can Retire Sooner Than You Think, data was gathered from a sample of 1,350 retirees across 46 states. The ground-breaking analysis revealed that within this subset, the happiest retirees have an average of $1.25 million in liquid retirement savings, adjusted for inflation. That figure will be the goal here.

New This Week From The Retire Sooner Team

#220 – The Secret to Happy Aging With Alan Castel

On today’s episode of the Retire Sooner Podcast, Wes talks with Dr. Alan Castel about how we can improve the aging process. Dr. Castel, a UCLA psychology professor, shares insights on memory, aging, and how to stay sharp as we grow older. Tune in for practical tips on enhancing memory and embracing a healthier approach to aging.

#27 – Kathy Sperl-Bell’s Guide to Winning at Work and Retirement

In 2021, Kathy and her husband, Bill, sold the business and retired to The Florida Keys, where she spends her time focused on core pursuits like blogging about travel and retirement,?painting, yoga, pickleball, and listening to as much jazz as she can get her hands on.

#36 – Defending Core Investment Principles

On today’s Retire Sooner Podcast, Wes addresses a Wall Street Journal article warning that the 60/40 portfolio and 4% withdrawal rate could lead to disastrous outcomes. While acknowledging market unpredictability, Wes highlights the resilience of these strategies and warns against the potentially destructive consequences such an outlook can have on those fighting for retirement security and uses market history to illustrate examples of these time-honored strategies bouncing back from difficult periods.

Team Highlight

Today, we remember the lives lost on 9/11 and honor the bravery of the first responders and countless heroes who stood strong in the face of tragedy. Let us never forget their sacrifice and resilience, and continue to honor their legacy.

At Capital Investment Advisors (CIA), we strive to help clients reach their goals by focusing on our specialty: Income Investing. We are a fee-only financial advisory and portfolio management firm headquartered in Atlanta with offices in Tampa, Denver, Phoenix, and throughout the United States. Our advisors in Georgia, Florida, Colorado, Dallas, and Arizona provide clients with a full range of financial advice. Since 1996, CIA has been providing financial strategy and management tailored to the client’s individual circumstances and objectives.

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