Can You Retire On $1.5 Million Dollars?

Hi folks. I’m Dana Dunkelberger, founder of Reliance Financial Partners. Today we’re going to answer the age old question, can I afford to retire? This is something we get asked week in and week out. I wanted to put together this video to show you the concepts we use to help our clients answer that question. We want you to plan on purpose. This allows you to enjoy your lifestyle and not worry about running out of money through retirement. When we’re looking at the investment realm or where you can put your money, there’s three different arenas that we look at overall. The first one is safety, number two, income and number three, growth.

Let’s talk about Nick and Abby. Give you just a little bit of background. And again, this is going to be conceptually and how we help our clients. They were getting about $7,000 a month between both their social securities and a couple of other income streams. They wanted about $10,000 a month, so $3,000 short, and Abby wanted to retire today. Now, we needed to get Abby that $3,000 a month so she could feel good about retiring and staying retired. When we’re focused on safety, it’s very simple. These are the type of financial products that we’re going to use very simply. You can use savings accounts, you can use speed, money markets, treasuries on the income side. Some folks like real estate or rental properties. Some folks like annuities, some folks may use a dividend structure. And then last but not least, growth. We can use stocks, we can use mutual funds, we can use ETFs. Now, we’re going to focus on income today because Abby wants to retire. So overall, they had about

1.5 million. They had saved over 40 years of work. So what we want to do is get Abby that $3,000 a month or 36,000 a year to make up their wants and needs and their income stream. So what that looks like to her on how we are going to focus on that because we’re going to use the least amount of money possible to get the income that they want. So in this scenario, we’re going to focus on income first. And when we backed into that number to get that $36,000 a year for them, it was about $700,000. That takes care of the income for the rest of their life, and Abby is happy. That being said, they need some rainy day money in case of an emergency, and their comfort level was about a hundred thousand dollars. And because folks, we focused on income and taking care of their lifestyle, now we can hyper focus on the growth and replacing the income that they’re taking out every month. So here’s what that looks like. This side takes care of their lifestyle to remaining is 700,000 that we can use. And like I said earlier, hyper focus on growth to replace the dollars that they’re spending on a monthly basis. Folks, if this resonated with you and you would like to create a plan on purpose, please reach out to our office, get on our calendars, and we’ll happily help you through this. Hope you have a great day and I’ll see you soon.


Scroll to Top