When A Million Is Not Enough

When A Million Is Not Enough

November 19, 2020 Financial Independence 25

A Million Is Not Enough

On Saturday morning, I woke up to an email from a long-time reader of this blog. To preserve anonymity, let’s call him Carl.  Carl sent me a link to this story from the Sunday Times and asked for my views. I was still in bed, the title – and the picture of a sun-drenched pool – were catchy enough, and so down the rabbit hole I went.

A Millionaire Retirement

The author (as the title suggests) was trying to bring home two key points:

Point #1: A £1m pension pot is well within reach for most people

Point #2: A £1m pension pot is nearly not enough to be a “wealthy” (whatever that means) pensioner

That being said, I thought the two core points were interesting enough for a proverbial double-click in today’s post.

Dreaming Big

When it comes to life, it usually makes sense to aim as high as possible. Even if you land short, you’ll still end up in a great place – and our finances are no exception.  Hence, I am actually in broad agreement with the author on the fact that achieving a £1m pension pot isn’t as unrealistic as people think it may be.  In fact, these three pension millionaires can give you a realistic blueprint on how to hit the seven-figure mark in your retirement portfolio:

Pension Millionaires

No, you don’t need to be a banker or a lawyer. That being said, life also has a habit of throwing curveballs our way. It can be a stint of unemployment or a health issue.  Some folks end up making a bad financial decision or two. Divorces are far from rare. Few people are lucky enough to get through life without a bump in the road.

For many others, it unfortunately boils down to a simple lack of financial awareness. If, for whatever reason, you haven’t paid attention to your finances early on, you may find yourself out of runway for your investments to compound.

The chart below is a helpful reminder of how much difference a couple of decades can make:

Total investment required for $1m

To continue reading, please go to the original article here:

https://bankeronfire.com/a-million-is-not-enough?utm_source=rss&utm_medium=rss&utm_campaign=a-million-is-not-enough