10 is the magic number for retirement?

According to Lincoln Financial Group study, the ratio 10 times income assets is a guide that can help people determine how they can be better prepared retired. In other words, if you earn $ 100,000 per year, you need a $ million in assets to retire comfortably. Understand that this is a guide, not a definitive report.

This seems too low for me, as a withdrawal rate of 10% with a long-term compensation rate of 5% over the $ 1,000,000 will last 15 years. Either you need more assets, a lower withdrawal rate or a higher rate of return. Maybe you'll need a combination of three to last 30 years or more, you can expect to live in retirement.

For example, if you reduce the down 6% with a conservative long-term rate of 4% return, $ 1,000,000 last 29 years. Can you live on $ 60,000 a year instead of $ 100,000? Otherwise, the relationship must change. The increase in long-term rate of return of 5% makes the final funding for 37 years. Taking 8%, or $ 80,000 per year while earning 5% will make you short of money in 21 years.

How long do you plan to live in retirement? Each person must determine their own personal relationship, and one of the easiest ways to do this is to work with a financial professional. Remember, the Lincoln Financial is a study guide to get started.

The study identified four behaviors that contribute to retirement success. The behaviors that lead to better outcomes are:

• Getting advice from a financial professional
• The member of a pension plan sponsored by the employer or IRA
• steadily Recording, and make additional contributions over the years, "energy saving"
• Have an investment strategy

research has also identified three retired behaviors that have reached the target of 10 times not to rely on. These behaviors are:

• Receiving an inheritance. This may or may not occur.
• The sale of a principal residence or earn money through real estate. Have you looked at the real estate market today?
• The sale of a business or shares in the company shares of the former employer. Again, it depends on market conditions and timing.

If these are your most important asset, what would happen if you need to turn these assets into income at a time when the market is down?

The study reinforces the recommendations of Lincoln for the actions that lead to better pension outcomes.

• The advice of a financial professional
• Participate in workplace pension plans (and IRA)
• Back up and "energy saving "wherever possible
• Have an investment strategy

Finally, do not rely on manna as an inheritance, or the product of the company selling shares, a company or your home. For more information on Lincoln Financial Life Retirement feeding studies courses, go to www.myconfidentfuture.com/retirementpower.