On August 24, 2015, the stock markets around the world nosedived. The S&P 500 sank by 11% from a high in May, meeting the definition of a market correction. Having fired my financial planner a year ago, I was motivated to check how my retirement savings were affected. After logging in, I used a handy retirement planning tool I had previously ignored. What I discovered surprised me: I don\u2019t need a million dollars to retire!<\/p>\n\n\n\n
How can that be true? I googled \u201cHow much do I need to retire\u201d. After checking five sites, the consensus seemed to be that I need about two-thirds of my current income to retire. The online tool factored in inflation and realistic investment returns that declined over time as I shifted to safer investments closer to retirement. I plugged in the figures and as the gurus foretold, I only need to save 10% of my gross income for retirement.<\/p>\n\n\n\n
Three years ago, I had no retirement plan. So I had over-reacted by over-saving. Now, in the midst of a market downturn, I realize I don\u2019t need to defer living. No more dreaming about what I would do when I retire with a million dollars. I can start living my retirement dreams now\u2013with a little money, a little time, and while I have the health. Instead of building a huge nest egg, I plan for a modest one and live a little every day. After all, in the words of the singer-songwriting couple, Andy Gullahorn and Jill Phillips, \u201cYou can\u2019t take it with you to the other side.\u201d<\/p>\n\n\n\n