How to Retire Comfortably: Retirement Planning Strategies for Long Term Financial Security

How Much Money Do You Need to Retire Comfortably in Minnesota?

The number might surprise you. Justin Halverson from Great Waters Financial recently stopped by a local news segment to talk about what it actually costs to retire in Minnesota today and more importantly, what people can do right now to get on track.

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The Numbers Are Higher Than Most People Expect

According to a recent study, the average Minnesotan needs nearly $92,000 per year to retire comfortably. That is for a single person. For a family of four, that figure climbs to around $250,000 annually. Inflation, high interest rates, and rising home costs are all contributing factors, and the reality is that the cost of living does not drop significantly just because you stop working.

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Savings Benchmarks Worth Knowing

A good rule of thumb is to have your annual salary saved by age 30, and ideally ten times that amount by the time you retire. That said, the formula is more nuanced than a single number. Your lifestyle goals, spending habits, and timeline all play a role in what your specific target should look like.

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Three Things You Can Do Right Now

Live within your means. Needs versus wants is a conversation worth having honestly with yourself. Do your best and do not shame yourself if you fall short, just keep adjusting. Strategize your savings. Max out your 401k or company plan first. You can contribute up to $23,000 per year, or $30,500 if you are over 50. From there, a Roth IRA or traditional IRA can add meaningful tax-free savings on top of that.

Have a plan. Not just a financial plan, but a life plan. At Great Waters Financial we call it life design, and it is about more than checking boxes. Most people do not just want to maintain their lifestyle in retirement, they want to live better. Getting there requires intentionality, community, and purpose, not just a savings account.

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Do Not Do It Alone

Too many people try to plan for retirement without any guidance and that is one of the biggest mistakes you can make. Having the right team in your corner makes an enormous difference. Contact our team to get started.