Do You Have Enough to Retire? How to Know What’s Truly “Enough"

 George Jameson, CFP®, founder of Capital Wealth Group, shares how to define and plan for “enough” in retirement — balancing income, spending, long-term care, and life purpose so you can retire with clarity and confidence. 

 Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.

Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.

This is for education only.It is not tax, legal, or investment advice. Before  acting on any information consult your tax, legal, or investment advisor.

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Capital Wealth Group is a Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.

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Transcript

  Hi, and welcome to another episode of Your Retirement Guide podcast. I'm George Jameson, a certified financial planner and founder of Capital Wealth Group in Columbia, South Carolina. Today we're gonna talk about a topic that comes up with almost every client I work with.

Do you have enough saved to support your lifestyle without worry? And what does enough look like for you in terms of lifestyle freedom, experiences, and peace of mind? Many people focus only on hitting a magic number. Maybe your magic number's a million dollars, 3 million, more or less. But the real question is, what's enough for you to live the way you want without over saving underspending or running out?

So how do you know if you have enough to really enjoy retirement? And live the life you want without worry.

So the first step is taking a clear look at your finances. Here are some of the key areas I walk through with clients. Number one, guaranteed income and other sources. What will reliably come in each month. You may have social security, pensions, rental income and so on.

Maybe you retire early and have no income for 10 years until social security starts. Maybe you work part-time for several years, or maybe income only comes from savings and investments. Every situation is unique and mapping it out is crucial. And then number two, monthly expenses and cash flow planning.

It is not just about how much you have, it's about how you'll use it. I recommend doing a retirement budget or cash flow analysis to get an idea of your expenses in retirement. The more accurate, the better. Don't forget those once a year or periodic expenses like holidays, vacations, car replacements, home repairs, and so on.

Also, some advisors reference the 4% rule. Which is a good place to start, but usually not realistic. Spending usually changes over time. Early in retirement, often called the go-go phase. Maybe the first 10 to 20 years. You often spend more especially on travel, hobbies, and family. Then comes the slow go phase.

You may still travel and have hobbies, but you'll usually spend less, so your monthly needs often decrease. And then finally, you have the no-go phase where you may need long-term care or support at home. Expenses can rise again, but in different areas of course. That's why cashflow planning is so important, and it's often about phases and not a flat number.

Understanding this pattern helps you prepare realistically instead of assuming expenses only rise with inflation.

And then number three, debt reduction or elimination. If possible, retire debt free. Especially from high interest loans like credit cards, mortgages with very low rates can be debated, but any debt over five or 6% is almost impossible to outpace with conservative investments.

Paying it off reduces stress and increases flexibility. And then number four, asset allocation and risk. Your mix of stocks, bonds, alternatives, and cash need to fit your goal and comfort level. Having some cash available. It gives you flexibility so you're not forced to sell investments at the wrong time.

And don't forget sequence of returns risk. If the markets drop early in retirement and you're pulling money out, it can shorten the life of your portfolios. That's why planning your withdrawals for the next five or so years is so important.

Now let's talk about planning for long-term care. Long-term care is often the elephant in the room. It is hard to predict who will need it when and for how long, but ignoring it can create big problems later. Here's some ways to prepare for long-term care. Number one, a long-term care insurance, of course, it's best to buy it between age 55 and 65, assuming you're in good health.

Here's an example, an average annual premium for a policy with 165,000 in initial benefits. Which includes a 3% annual inflation rider, so at age 55, a single male will pay about 2000 per year. Single female will pay about 3,700 per year, and a couple would pay about 5,000 combined at age 55. And then it goes up every year. You wait, depending on your age and health.

Let's say you're a single male and decided to buy long-term care insurance at age 55 and ended up needing it, starting at age 85. Your total premiums paid would be about 62,000, and your total benefit would be about 400,000.

So another option would be set aside a cushion. If you don't have long-term care insurance for one reason or another, you can self-pay, aim to cover at least three to five years of long-term care costs depending on your location and other retirement income. I automatically build in a few years of long-term care cost near the end of life, depending on family history or concerns, we can adjust that cushion and next you may want to explore multi-generational living. Moving closer to your adult kids or relatives provides both emotional support and financial savings. It's how families handled aging before retirement communities became common. This worked great for some families and not so well for others.

So now let's talk about the non-financial planning side of retirement. Retirement isn't just a math problem, it's also about purpose and identity. Ask yourself, are you retiring from something or towards something?

People who run toward purpose and fulfillment tend to have the most satisfying retirements

So consider these areas your sense of purpose outside of work, your relationships, family, friends, and social networks,

your daily structure. What brings you joy when you wake up each day.

And how to establish a new identity away from work For many. Leaving a career means losing recognition  📍 and a piece of  identity. Here's some ways to make this transition smoother. One, identify the parts of work that energize you. Can you replicate those in retirement?

And then, two, recognize what work took away, such as time with family, hobbies, travel, and then add those back into your life. And then three, find balance so your self-worth isn't tied to your paycheck or title. When you can answer both sides truthfully, the financial and the non-financial side, you'll step into retirement with confidence.

And here's an alternative way of retirement. I call it a phased approach. Retirement doesn't have to be an on off switch. Many people benefit from a gradual transition. It may be shifting responsibilities at work, so focusing on what you enjoy and letting go of the stressors.

Or maybe you want to explore part-time work or do a job that you really enjoy. You also may do part-time consulting, board service, or just volunteering. Gradually increase your freedom while maintaining income and purpose. This phased approach often feels more natural and less risky, both financially and emotionally.

So here's some final thoughts. When we talk about knowing if you have enough. It is not just about hitting a certain number in your investment accounts. It's about building a comprehensive retirement plan that includes both the  and non-financial side of retirement. Assess your financial resources carefully.

Income debt, cash flow, taxes and allocation. Recognize that spending changes in phases, not a straight line. Plan ahead for long-term care. Don't overlook the non-financial aspects.

Don't overlook the non-financial aspects such as purpose, identity, and relationships. You may consider easing into retirement gradually instead of overnight. Here's an example of why retirement planning isn't just about the math. I recently worked with a couple. Who had saved diligently they had more than enough saved, but they were anxious, constantly worried about market swings and potential long-term care costs.

When we built a clear income plan that they could visualize, adjusted their investments for a little more stability. And mapped out a long-term care strategy. Their stress went way down. They could finally focus on what they really wanted, spending time with their grandchildren and traveling together.

That's what a good plan does. It gives you clarity and confidence. So you can actually enjoy retirement, not just worry your way through it. When you bring these elements together, you'll create a retirement that's not just financially secure, but also personally fulfilling.

Thank you for listening to Your Retirement Guide podcast to schedule a free consultation. Visit my website at Capital Wealth Group sc.com. Stay tuned for next week's episode and have a great day.