In the Video above, Scott Farnsworth, Central Florida's Tax-Free Retirement Expert answers a frequently asked question: How much is enough for my retirement?
"How much is enough depends a lot on you and the way you want to live in retirement. I believe that there are three separate phases of retirement. At first, when you first retire, you have all this energy and time and money. We call those the go-go years. You're out doing, you're checking things off your bucket list, you may be traveling quite a bit. After a while, maybe ten years or so, you start to slow down. We call those the slow-go years. That's when you say been there, done that, got the t-shirt. Let's just sit on the porch tonight and watch the sunset. At that point, your income needs may go down, maybe 20%.
Eventually, unless you die, you will end up in what we call the no-go years, when you need care. You'll need care for long-term care for assisted living or things like that. The number is actually quite large. But here's what makes it larger: if you have to pay tax on your retirement savings because you put your savings into 401(k)s or IRAs, then the number is substantially larger. Because it's not how much money you have saved it up; it's how much money you can actually bring home. Tax-free savings makes it much easier to have the right number when you are ready to retire."
How much is enough for my retirement?