John and Jennifer (Jen) are 62 and want to retire comfortably soon. Can they retire now? They want to know how to set up their retirement income to give them the maximum income that will be reliable for the rest of their life. Will common rules of thumb about retirement income help them?
They have been investing for years and have $1 million in retirement investments. Is that enough?
They make an income of $100,000 per year and are scared to stop working and give it up.
They went to see a financial advisor and received the typical advice financial advisors give, based on 6 rules of thumb.
John & Jen came to see me because they were still hesitant to quit their jobs. They asked, “This advice is from rules of thumb and not specifically for us. Is this good advice for us? Can we really retire now?”
I told them, “I see this type of canned advice a lot. These rules of thumb have been handed down from one generation of financial advisors to the next. The rules appear to be common sense and are usually accepted without question.
I studied these rules of thumb in-depth to find out whether or not they actually have worked in history. Read the study here.