Your Net Worth Becomes Meaningless When You Retire
You might have diligently been setting aside money for the future and have a big nest egg now. But even $1 million might not last long in retirement if you live in a state where the cost of living is high.
Unfortunately, when people set retirement savings goals, they often do so without actually knowing how much they’ll need each month to cover expenses in retirement, said Niles Geary, co-founder and CEO of Voyage Partners, a financial planning firm in Johnson City, Tenn. Only 38 percent of workers have estimated how much income they would need each month in retirement, according to a survey by the Employee Benefit Research Institute and Greenwald & Associates.
“Your net worth becomes meaningless when you retire,” Geary said. “The only thing that matters is how much income your net worth produces.”
