Bloomberg says You Need at Least $3 Million in Savings to Live Comfortably in Retirement

https://www.bloomberg.com/news/articles/2023-02-21/saving-for-retirement-investors-say-you-ll-need-3-million-to-be-comfortable?srnd=premium-canada

Recently came across this article where Bloomberg says you need $3M to retire comfortably.

If you look at the image below, you will find a good chunk of people in US and Canada think they need to have $5M or more to retire comfortably.

This means:

We are in a crisis where the majority of the people cannot retire as most people do not have $5M or more
Inflation is hitting us really hard which makes people want to prepare an enormous nest egg before they can retire

To give you a better picture, Canada has a population of 40 million.

There's only 91,328 people with a net worth greater than $5M (around 100K people)

https://www.thekickassentrepreneur.com/top-one-percent-of-wealth-for-canadians/

This means 100K / 40M = 0.25% of the population in Canada will retire comfortably according to this survey.

What do you think?

Eric

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When it comes to retirement, it is important to figure out what is the income level you need per month (e.g. $3K , $5K, $10K) and reverse engineer how to get there.

It is easy to fall into the trap where we think we need an enormous amount of money in order to retire ($1M, $3M, $5M) without considering what's the cash flow.

If you focus on capital gain in your early years (earlier than 50), I would suggest you to focus on cash flow after 50 to achieve retirement faster.

Most people I hop on a call with can retire with $5K - $10K per month.

Then it is a matter of what kind of investing strategy would offer you $5K - $10K per month with AS LITTLE capital as possible.

The traditional finance method assumes 4% return withdrawal rate when you retire

4% * $1M = $40K per year.
4% * $2M = $80K per year
4% * $3M = $120K per year
4% * $4M = $160K per year

It's not difficult to see why people might think they need millions of dollars to retire.

But instead, we can shift our focus from the portfolio size to improving our % return.

That will save you years of "grinding, saving, and cutting costs"

I did it. So I know you can do it too.

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The goal is to achieve 30% return per year.

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In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses such as mortgage, utilities, car payments. This will help accelerate your retirement goals.

If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year.

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