How Much Money Should You Have to Retire? [Try Value Based Planning]

How much money should you have to retire?

That’s a difficult question to answer because it’s not always feasible for people to save.  And, we all have different ideas of what defines retirement and what defines a comfortable lifestyle.

For those reasons, if you’ve come here looking for a number to plug into your spreadsheet, I’m sorry to say that you’ve come to the wrong place.

You can find countless articles on the internet written by retirement planners who want some of your money and are more than happy to answer this question for you.

At Rebel Retirement, we empower boomers and anyone else interested in making independent and proactive decisions with their retirement plans.

We encourage people to create a value-driven, or Just in Time, retirement regardless of the amount of money they have saved.

With that said, I’m happy to point you in the right direction if all you want to know is “how much”. Here’s a link to another website that explains the Rule of 25.

The article gives examples of how much you should save based on how much you want to withdraw each year after you retire.

It’s based on smooth sailing and the presumption that you’re able to save as much money as you need to reach your annual withdrawal figure.

Be that as it may, if you’re interested in a practical answer to “How much money should you have to retire”, I invite you to keep reading.

My solution is not about how much money you should have to retire.

It’s about a value-based solution founded on a continuous improvement mindset.

It doesn’t matter if you have a little or a lot.

The method is effective for retirees, or people who want to retire, and are searching for alternative solutions.

Freethinkers who aren’t afraid to go against the status quo to achieve their retirement dreams will find it useful.

What is value-based retirement planning?

With value-based retirement planning, you are in charge of the results – not your financial adviser, or the fluctuations of the stock market.

Value-based retirement planning is based on the idea that you plan your retirement around what you value and eliminate what you don’t.

This method is “lean”, but it’s not about living with less. You may discover you have more!

It’s about removing waste and adopting a continuous improvement mindset.

What is waste?

Waste is anything that does not add value to your retirement. Therefore, it is anything that no longer provides a benefit to you – especially possessions that are costing you money to retain.

Here’s what I mean.

I’ll use this personal example of waste as told in Rebel Retiree’s article Eliminating Waste and the Cost of Ownership.

“I needed the space to house a machine that was no longer used. The machine was kept because it had a good engine worth $4,000. So in my wisdom, I paid $1,000 per month to house a machine that would go to the dump. I’m not the only one that has paid $12,000 to keep a worthless item.

It’s not uncommon for many of us to maintain ownership on things that no longer offer us any real value – think fishing camps, boats, houses, RV’s, or, as in Rebel Retiree’s case, housing outdated equipment.

We pay rent, insurance, and upkeep on possessions we don’t use.

Sometimes we retain them due to peer pressure from friends and family. Or we think we can’t get rid of them because we might want it or need it in the future.

What is a continuous improvement mindset?

A continuous improvement mindset is forward-thinking.

It’s not a singular event or action you take, but a continuous process of improvement.

In essence, you don’t live the same lifestyle mistakes over and over.

You continually look for areas to improve your retirement lifestyle by removing waste.

Read: Eliminating Waste and the Cost of Ownership

Ways to get started with value-based retirement planning.

First, you’ll need to adopt the mindset.  Embrace change. We suggest you think of your retirement as a business.  With you as the entrepreneur, you decide what makes your retirement business a success.

Second, you’ll have to deal with a few challenges. Oftentimes couples face the following barriers when starting value-based retirement planning.

  • Mixed Signals
  • Lack of Trust
  • Skepticism
  • Lack of Commitment
  • Inconsistent Direction

Having said that, if you commit to using this method, the benefits outweigh the challenges.

You’ll discover that your resources abound and you are able to live the retirement of your dreams. Plus, you’ll enjoy an abundant lifestyle without having to worry about money.

For this process to succeed, you and your spouse must communicate and cooperate with one another.

Rebel Retiree and I regularly discuss plans such as the type of travel we want to do, or where we want to live next.

Four important steps for success.

1 – Identify Waste – Think out of the box. Where can you remove waste? How can you cut the fat and stop creating waste?

2 – Make a Plan – Plans can be flexible. But if you set a goal, it helps to guide you in the right direction.

3 – Implement the Plan – Make a commitment to succeed. Don’t let old habits get in the way.

4 – Check Results – Did you receive a desirable outcome? Rinse and repeat for continuous improvement.

Continuous Improvement-Rebel Retirement

 

Want to learn more?

We have so much more to inspire you than what I’ve covered in this brief article. I encourage you to click over to this page for more information about Just in Time Retirement.

In closing

Retirement planning is often about how much money you should have to retire. However, that’s not always feasible for everyone. A value-based (Just in Time Retirement) is for anyone willing to accept a continuous improvement mindset to achieve a successful,  abundant retirement lifestyle.

 

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