Vacation Plan
It’s almost vacation time. I know exactly the time I get on the train, to get on plane and approximately the time to get on the boat. The boat is approximate, since we have to get on one after we land in Venice, Italy to get to our hotel. Sounds like plan, right?
I’ve spent hours, going over Rick Steve’s videos, TripAdvisor.com, InItaly.com, AirBnB.com, Venere.com, Booking.com and Flyertalk.com to make decisions about where Carol and I stay, visit, drive and eat. I still haven’t made up my mind on Wi-Fi access, but I’m getting close thanks to CellularAbroad.com as advised by InItaly.com.
What’s my point? I’m probably like most tourists getting ready for the trip abroad, I’m planning ahead. Pivot point: How’s my planning for retirement going? After all, I am a financial planner.
Recently on an episode of “Live With Jim and Anna” a client questioned us about a recent report that the typical retired couple needed $2.5 million to fund their retirement. Anna had a quick answer that this number could be a future value for a 30-something couple today. I was just stunned.
Now I have a financial plan and a planner just like many of you. Anna, long time teammate and now boss, has gone over my plan and my investments. She didn’t seem to find any fault in the decisions Carol and I are making for the future and money we’re putting away for the next stage of our lives. But that question still haunts me. It’s a different number than mine.
Ok, I quickly looked at some financial plans I’ve created recently for couples in their early thirties. That study looks right. To fund a $72,000 annual after tax budget with a house and no mortgage you in 2050 with a 4% inflation rate, $2.5 million looks about right in “future dollars”.
So let’s get back to vacation. I’m spending at least 30 hours planning a 16-day trip to Italy, a place we’ve visited eight times in the last ten years, and lived in for three years in the mid-1970’s. How much time do we spend as a planner helping a thirty something couple plan for housing, education and retirement. I probably average 11 hours.
What’s more important? You decide. I’m going back to see how my nest egg is doing in 2050 dollars.
