What Does Retirement In Florida With $500K In Savings Look Like?

Anyone who tells you that anything less than retiring with one million dollars in savings is poverty as their head in the clouds.  Most people do not have nearly that much; the average amount of retirement savings for 65-year-olds in 2024 is $200,000, and a substantial number of sexagenarians have no retirement savings at all.  If you have some money saved for retirement, but it is unlikely that your retirement account balances will reach seven figures before you enter your eighth decade of life, do not despair.  You can afford a comfortable retirement if you change your expectations and avoid costly mistakes.  For help planning to retire within your means, contact an Orlando estate planning lawyer.

Pay Off the Mortgage on Your Family Home and Stay Put

The best retirement plans start when you are young.  If you buy a house with the intention of starting a family, plan to stay there until it becomes your empty nest.  Buy a modestly sized house with a modest price tag; you do not need more bedrooms than people.  If one of your children moves out after reaching adulthood, let another relative or friend move into the room, rent it out, or put it to income-generating purposes, such as giving piano lessons.

Buying a new house is an expensive and time-consuming endeavor, especially now that a recent court settlement could mean that buyers will be responsible for real estate commissions.  You don’t have to worry about that or about sky high interest rates if you stay in your family home.

Follow the Three Percent Rule, Not the Four Percent Rule

Another outdated piece of retirement advice is that you should plan to spend four percent of your retirement savings each year; in other words, you should expect your retirement to last 25 years.  A better idea is to expect your retirement to last 33 years.  By this logic, you should spend three percent of your retirement savings each year.  Living longer or retiring earlier is a more inspiring goal than having more money.

Start Drawing Social Security at an Advanced Age, and Keep the Employment Income Flowing Until Then

The age at which you start drawing Social Security makes a big difference regarding your retirement income.  If you can wait until you are 70 before you start drawing Social Security, you get to see an increase in your income at an advanced age.  This does not mean that you have to stay at your 9 to 5 until you are 70, or even that your plans will pan out if you plan to.  Rather, you should have some other source of income that will last at least until you can start drawing Social Security.

Contact Gierach and Gierach About Realistic Retirement Plans

An estate planning lawyer can help you afford a comfortable retirement, even if you will probably never be a millionaire.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.

Source:

moneywise.com/retirement/retirement/i-have-500k-in-savings-and-want-to-retire-right-now