Your lifestyle changes today will impact both your savings and the amount you will need to comfortably retire. Most people believe they will spend less money in retirement than they do today. A commonly used assumption is that you will need to replace 80% of your income during retirement though this may not be the case for you. Some people will have their mortgage paid off, everyone saves a different percentage of their income, and everyone’s taxes will be impacted differently. This is why we recommend that everyone have a financial plan, understand where they are today, and how to achieve their long term goals no matter which stage of life they are in today. Below is an excellent video/article that frames the impact that lifestyle changes can have on ones retirement needs.
For long-term investors, knowing the difference between what can and cannot be controlled is the key to both financial success and peace of mind. While all investors would like to believe they can predict or even control the direction of the market, experience teaches us that this is difficult to do. Constructing and managing an appropriate portfolio, while making strategic and tactical allocations based on market opportunities, ideally with the guidance of a trusted advisor, is often the best approach. However, while following markets and maintaining perspective on the economy is important, an even more fundamental key to success is simply to start saving early, stay invested, and remain focused on long-term financial goals. What can investors do to benefit from these principles today?