Magic Number Depends On You

Is $1 million enough? How much money does it really take to retire? The $1 million figure is often bandied about by the investment industry. But critics claim much of the blather is an orchestrated scare tactic designed to serve the self-interests of those who peddle financial products. So, what is the real figure?

Granted, $1 million isn’t what it used to be, but the Institute of Certified Financial Planners warns savers not to become so bowled over by big numbers that they give up trying.

Many people do. At investing seminars and retirement workshops in Spokane, participants are quite apt to vent their feelings during a break or after the session. And often they express frustration with the unrealistic size of the nest egg that the “experts” say savers must accumulate. It’s not at all uncommon to hear the lament, “That’s more than I make!”

Saving so much seems such an impossibility, some simply give up on the idea, opting instead to work as long as possible and hope for the best.

But the Institute of Certified Financial Planners says there is no magic number. A $1-million nest egg may be just right for some, not enough for others, and far more than another needs. It all depends on personal circumstances.

A better rule of thumb is that retirees typically need roughly 80 percent of what they lived on before retirement. “That’s based on the idea that certain pre-retirement expenses decline or disappear during retirement,” says the institute. Work-related expenses for transportation, clothing, payroll taxes, and setting aside a savings for retirement all go out the window.

But as with any rule of thumb, 80 percent is rough at best. In retirement, some covet a quiet stay-at-home existence. Others globe-hop in search of the good life. It all depends on you how long your money holds out.

Project Joy is looking for volunteers who can sing, play a musical instrument or perform in a skit.

The city of Spokane’s senior cultural service program serves as a forum for those 50 and over who wish to use their talents, hone their skills or develop undiscovered abilities in music, dance and drama.

In turn, Project Joy entertains at convalescent centers, retirement complexes, and fraternal and civic functions.

Specific volunteer needs at this time include choral singers, piano players, vaudevillians, guitarists, puppeteers, musical variety teams, and actors.

For more information, phone (509) 535-0584.

In response to an item in last week’s column about a concerted effort to lobby the White House by telephone on senior issues, several readers phoned me saying they wanted to get involved, but I had neglected to include the number to call.

So here it is: (202) 456-1111.

According to the Washington State Senior Lobby, a White House policy requires that any topic on which more than 20 phone calls are received at that number in one day on any given topic must be brought to the attention of the president. Senior Lobby members made a pact to call every Tuesday in May on predetermined issues. Today’s calls will stress the need to reauthorize the Older Americans Act. Next Tuesday, volunteer senior lobbyists will call for enactment of universal health coverage in America.