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Edelman Financial Planning Director Brandon Corso on how to figure out how much money you will need for retirement and how to achieve your financial g...
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And now a new study shows that some things will be pretty tough in your golden years as well in focus tonight.
The -- the investments out today with new guidelines for saving for retirement.
Are you saving as much as the world's largest 401K administrator think she should be.
Brandon Corso is director of financial planning for -- financial resources -- and welcome to the show great to see you.
So the bottom line here is that Fidelity is saying that you should have as much as eight times of your final salary say it.
By the time you retire if you make a -- -- -- box he should have by 800000 dollars in the bank to retire on.
What do you make of that.
Number -- Well for for many many of us that's just not going to be good enough so the answer is.
That's a big fat no but in the report there's really no way to evaluate -- -- Brandon what do you mean it's not good that's not enough money.
Or we can't get there.
That it's not enough money that for most of us having eight times our final salary.
If that's all we've accumulated we're gonna run out of money before we die that's that's how it's not good enough.
Wow OK so really -- the report there's this matter is I don't think a lot of -- almost -- gets -- as number.
But there's good news in the report and that the conversations continuing this is a huge conversation.
The vast majority of Americans underestimate how much they have to accumulate to retire and so just talking about it as a good thing but the bad news is.
That most people would be short and the last thing anybody should do is to use a rule of thumb to try to ensure that they attain their success the only way.
You're gonna do that his view planning based on you your family your goals your life you're -- -- doesn't Leary way you're gonna ensure you get where you want -- -- Sure it's different for everybody has different people have different than they wanna do -- paralyzing -- different life expectancies except her ex that are.
-- you know I think for so many people though in an economy like this when they hear this kind of report they think.
I don't know that I can never get there and it may make them decide not to say that all.
Well I hope not I mean that's obviously the worst thing anybody can do.
Time grows money more than anything else.
And so if you haven't started you need to start tomorrow even if you can sign up into -- retirement account and do 1% of your income.
And then revisit -- say three months later and try to -- -- if you're I can insure you if you're not saving anything there's no way he'll succeed.
And so like I hope the report spurs people to take a look at are you saving enough of your income and if not how can you save.
More what's interesting about this though I think is it's only people say to me.
I want to -- -- for retirement but what number of my driving and I don't have any clue this is one answer -- that question do you have a better rule of thumb.
Well about a rule of thumb is to ask yourself how much income you want to retirement.
Double it and -- a zero and if you do that what you're gonna find as you need far more money -- eight times your final earnings that Fidelity.
Is promising but to your point -- to your point that people feel like they can't -- for retirement look.
You can defer the inevitable but if you're unwilling to make hard choices now when you -- retirement they're going to be forced upon you.
Attitudes always been why not make the hard choice now as opposed to getting blind sided and retirement you're gonna pay the piper eventually.
I'm Brandon you're the voice of our -- thanks for coming on tonight thanks for being such a good sport appreciate it.
My pleasure good to see you.
