The No Holds Barred Formula for Retirement Asset Accumulation

Real Estate Agent with Bill Cherry, Realtor 0124242

If you're forty years old and you believe you will be anxious to retire at seventy, you've got thirty years remaining to accumulate the wealth you will need to sustain your non-working retirement years.

The trick is to have enough saved so that no matter how long you live after retirement, you'll be financially independent.  It seems to me that almost everyone buys into that desire.

So let's say that you recently bought your home and with a thirty-year mortgage.  That means it should be paid for when you retire, unless you refinance it and take out equity along the way.  

So if all goes as planned, you won't be making a house payment after you retire.  Insurance, maintenance and taxes will continue

You need to determine now how much income you believe you will need each year after retirement.  And for the sake of this example, let's assume that your Social Security income will be enough to offset the taxes, insurance and maintenance of your home.

And let's assume you believe you will need $5,000 a month income to continue to live comfortably.

Conventional wisdom is that in order for you to draw $5,000 a month for the rest of your life, no matter how long you live, you will need to have $1,500,000 set aside in your retirement account.

The formula is quite simple.  Take the amount of money you plan to withdraw every year and divide by .04. In this example, 12 x $5,000 = $60,000.  Then divide the product by .04. In this example, $60,000 ÷ .04 = $1,500,000.

Now divide the dividend by the number of months until your retirement, and you will have the amount you must save each month.  In this example, $1,500,000 ÷ 30 = $4,167.00 per month you will need to save.

The second part of your plan requires that you set aside your savings in financial vehicles so that your savings qualify as what we call your "safe money."

For after all, If you suffer any net losses, you've got to be prepared to make them up by transferring additional money to your savings.

So how are you coming so far?  

Most people who are self-employed and especially those whose primary income comes from commissions fall behind until it's too late.

Do you have a viable plan, and is it in place, and are you religiously following it, no matter what? 

Chances are you have a coach helping you stay on track to develop listings and sales.  But do you have a coach to help you plan and accumulate wealth?

One without the other is a flawed plan.

So how do I fit in?

I am the director, analyst and adviser for those whose goals are growth and protection of their financial wherewithal, and whose personal estates are important to them. I build specific, personal plans for each of my clients, ones they are advised to follow when using their brokers, attorneys and accountants. 

Planning, executing the plan, and following the plan dramatically increase the opportunity for success while minimizing risk.

I also analyze businesses, especially those which are real estate oriented, and the financial patterns of churches. I have extraordinary experience in both areas.

It's time for you to call me.  In the meantime, click here to learn more. Park Avenue Financial.


William S Cherry & No Company
dba  Park Avenue Financial



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Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Bill, The new site is great. I'm glad to see that you are using a business name now. That is a smart move. Good luck.

Bill Roberts

May 27, 2014 12:56 AM #1
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Bill, thanks for your addition.  I often think about you, and am really pleased that you are doing well.  We need to visit by phone sometime soon.

May 27, 2014 11:35 AM #2
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