How to Have Enough Money for Retirement

Did you know that we are living longer, more active lives?  While you might not feel it in the morning, but today’s 70-year-old male has a high probability to will live well into their 80’s – maybe even your early 90’s.

If this is the case then having enough money for retirement is going to a big challenge.  Here is why.  If you are like most people, then you probably expect to retire sometime in your 60’s.  However, living a longer, more active life means that you will be retired for 20 or even 30 years.

As such, you need to have a plan to make sure you have enough money for retirement.  Basically ‘age proofing’ your retirement plans so that you can live comfortably for as long as possible.  With that in mind, here are some tips you should consider.

  • Multiply it by 20

What is the it?  Your final pre-retirement salary, or the average of your final 10-years of working if your income is inconsistent.  As such, you will need to take this number and multiply it by 20 to figure out how much money you will need to live comfortably.

Now, this does not mean that you will need to have all the money in an account from day one.  Instead, you want to identify potential income sources that will get you close to this amount.

Granted, the math will never be precise.  I mean who can predict the future?  But know how much you will get from your pension, social security, and other savings will help you know if you need to take alternative measures, such as a reverse mortgage.   Which you can read about in a free guide here:

Now, if you are nowhere near the age of retirement, but are reading this article then you will want to multiply your salary by 20 plus half your age.  So, if you are 40, then you want to multiply your salary by 40 as this will help you to adjust for the effect of inflation over time.

  • Plan for Getting Sick

It’s inevitable, we will all get old and a big part of getting old is dealing with the accumulated ailments of an active life.  Unfortunately, the cost of healthcare in the U.S. is not going down and if you think just visiting the doctor is expensive, the check out the costs of spending time in a hospital or a nursing home.

While Medicare currently cannot reject any treatment based upon cost moves to reform the health insurance system in the U.S. might change this.  As such, retirees need to have a plan to cover healthcare expenses.

This might include Health Savings Accounts, long-term care insurance, or some other option.  If not, then they will risk either running out of money or having to declare bankruptcy to offset the cost of healthcare.

  • Retirement Doesn’t Always Mean That You Stop Working

Traditionally retirement meant that you would stop working altogether.  But for today’s seniors ‘retirement’ means transitioning to another stage of their career.  Maybe it’s volunteering or serving as a mentor.  While for others retirement is the transition to some form of informal work including taking on a part-time job or working as a freelancer.

No matter how you cut it retirement means an end to the 9-to-5 work day and transitioning to something more flexible.  The advantage of this approach is that today’s retirees can supplement their savings.  Even if it is only for five years, this means that can allow the balances in their accounts to grow before they start marking withdrawals.

  • Rule of Three

 Think of it as the three-legged stool for retirement planning: 1) managing withdrawals, 2) making adjustments, 3) have an emergency fund.   Without any of these legs, your retirement savings plan is sure to buckle under pressure.

Let’s start by looking at managing withdrawals.  It used to be that the 4% rule was considered the gold standard for managing withdrawals from your retirement account.  However, as we are living longer lives, this rule may no longer be relevant.  Instead, you want to plan withdrawals based on combination of your current needs and how this will fit into your long-term goals.

This leads us to the second leg – making adjustments.  Even the best economists are unable to accurately predict what will happen 20 years from now.  As such, you need to be able to make adjustments as you go.  Keep in mind your long-term goals, but adjust to make sure you are on a path that will get you there.

Lastly, is the idea of having an emergency fund.  Accidents do happen and you need to have a special account which can only be broken in case of fire.  Even if the account only has $1,000 in it, this will offset the blow of an unplanned event.

How to Diversify Your Retirement Portfolio

Many professionals have the dream that they will be retiring with a sizeable retirement portfolio. What many people don’t realize is that they can have more control on their portfolio than they thought. For instance, let’s say that you have a passion for currency or cryptocurrency, there are options for you to add to your portfolio. We’ll get into this a little bit more in a minute. Let’s take a full look at how to diversify your retirement portfolio with these following tips.


Knowing and understanding who your investments are, is important. You want to make sure that you are following all the laws and that your investments are legitimate. Investing with a cryptocurrency can be fun and exciting. With so many online avenues now accepting bitcoin, it makes sense to invest in something so young, yet so established and well known throughout the world. Bitcoins are used worldwide for many different kinds of transactions and are worth quite a bit in the trading market. Genesis Mining makes it easier to invest in bitcoins. Bitcoins make an excellent investment option. Their value is as high as the trust the community places in it and is accepted by many major corporations worldwide. In other words, the more people use it, the more value it will hold.

Make sure that you read reviews, speak with other clients, etc. In other words, do your due diligence. Make sure that what you’re investing in will have minimal mistakes, is cost effective, and will give you optimal returns and gains.


Diversifying your portfolio isn’t necessarily meant to boost performance, nor does it really protect you against losses. However, it does allow you to have different options within different investment types. According to investment companies and brokers, having a diversified portfolio can help offset some of the more poorly performing assets. Diversifying can help manage not only risk but also help avoid costly mistakes in the future. Having a well-rounded retirement portfolio ensures that you are protected and have enough assets to succeed with.


Just because you like food, doesn’t mean you have to invest with all funds having to do with food. By avoiding similar stocks, you avoid creating risks. This means that you’ll be able to gain more or at least make even. The same goes for small-cap funds, it doesn’t necessarily mean that all small-cap values will give you the same result.


The more investors a fund has, the lower the price would be for your share. That means you can buy more and have a lower risk. When the entire fund or stock is sold you will receive your share. With large cap funds, you are able to reinvest as much as you’d like. Many of them are also categorized making it easier for you to decide which fund you’d like to invest in. For the most part, many large cap funds have a management team, which helps you maximize your earnings. It also takes out the guess work for you.


Diversifying your retirement portfolio is not a one-time thing. You need to do the following four also known as TPRR:

  1. Track
  2. Periodic Checks
  3. Rebalancing
  4. Reinvestment

These will ensure that your portfolio is performing at its best and giving you the returns you expect and desire. Staying on top of your portfolio, whether you’re handling it, an investment broker, or a specialized management team, it is important that these are done consistently and with full disclosure.

Whether you’re a new investor or a veteran investor, it is important to know that diversifying your retirement portfolio can help you gain the best results. Retirement is about enjoying what you’ve worked so hard for, and as such, it is imperative that the right choices are done for you. Talk to your investment team about your financial goals, and see how they can help you diversify and reach maximum returns with little risk.