ArtemVarnitsin \/ Envato <\/p>\n
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For many Americans, retirement isn\u2019t just about getting by \u2014 it\u2019s about living comfortably and maintaining a middle-class lifestyle.<\/p>\n
Earning $12,000 a month ($144,000 a year) in passive income, for instance, could make that possible, covering everyday expenses while still allowing for travel, dining out and other luxuries.<\/p>\n<\/p>\n
But reaching that level of income in retirement requires more than just a large nest egg. Your savings must also be resilient enough to handle inflation, market swings and the risk of outliving your money.<\/p>\n
The financial bar for this kind of retirement is likely higher than most people expect. Here\u2019s why.<\/p>\n
Retiring on $144,000 isn\u2019t typical. In 2025, the \u201cmagic number\u201d for retirement savings is $1.26 million, according to a Northwestern Mutual study (1). Using the standard 4% rule, that equates to about $50,400 per year \u2014 or $4,200 per month in retirement income.<\/p>\n
That figure aligns closely with the median retirement income of $54,710 for Americans over 65, based on 2023 U.S. Census Bureau data (2).<\/p>\n
By contrast, aiming for $12,000 per month in retirement income means targeting nearly three times the income of the average retiree. To support that level of spending using the 4% rule, you\u2019d need around $3.6 million in retirement savings.<\/p>\n
That\u2019s already a steep target, but it only scratches the surface. Once you factor in inflation and longevity risk, the bar climbs even higher.<\/p>\n
If you\u2019re hoping to achieve three times the average retirement income, you may benefit from working with an advisor. People who work with financial advisors see a 3% increase in net returns, according to a report from Vanguard.<\/p>\n
The advisors at Range<\/a> offer white-glove financial services to high-income households.<\/p>\n Once your equity enters this ballpark, one of the most significant financial pain points can be asset under management (AUM) fees. These fees mean that portfolio managers take a percentage of the value, typically between 0.5% and 2%, of your managed assets \u2014 so as your wealth grows, so do their fees.<\/p>\n Range offers 0% AUM fees for advisory services<\/a> and a flat-fee structure so that you can preserve more of your wealth. They also provide an all-in-one solution for everything from alternative asset management to taxes \u2014 meaning all your financial needs are covered.<\/p>\n Book a complimentary demo today<\/a> to see if Range is the right fit for you.<\/p>\n Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a><\/strong><\/p>\n Even modest inflation can erode purchasing power over time. For example, if you retire at 62 and live to 82, a 2% annual inflation rate would significantly reduce what your retirement income can buy.<\/p>\n To maintain the same standard of living as $144,000 in your first year of retirement, you\u2019d need about $214,000 per year by age 82.<\/p>\n Your ability to manage this issue depends heavily on your investment strategy. If you rely primarily on low-risk assets like bonds or Treasury securities, you may need well over $3.6 million to keep up with inflation.<\/p>\n Alternatively, you might invest in inflation-sensitive assets like stocks, real estate, or gold. Many retirees do. According to Empower, the average American in their 60s or 70s holds nearly half their portfolio in equities (3).<\/p>\n While these assets offer higher long-term growth potential, they\u2019re also more volatile, which makes consistent withdrawals more difficult.<\/p>\n The price of gold has made headlines around the world this year, as investors worried about a rocky stock market put their faith in the inflation-hedging asset.<\/p>\n With the commodity recently trading at $4,185 per ounce, gold has proven to be a resilient and profitable investment for those looking for stability in retirement.<\/p>\n If you\u2019re interested in investing in gold, Priority Gold<\/a> can help. Offering physical delivery of gold and silver, their A+ rating from the Better Business Bureau and 5-star rating from Trust Link can help you feel confident in your precious metal investments.<\/p>\n Priority Gold also offers free shipping and free storage for up to five years. Qualifying purchases also receive up to $10,000 in free silver<\/a>.<\/p>\n Plus, Priority Gold allows you to convert an existing IRA into a gold IRA, with 100% free rollover.<\/p>\n To learn more about how Priority Gold can help you boost your nest egg, download their free 2025 gold investor bundle<\/a>.<\/p>\n Whether you already own property or not, a robust real estate portfolio can help you reach hefty retirement income goals faster. But many soon-to-be retirees would prefer to avoid the stresses of being a landlord in retirement.<\/p>\n Real estate platform Mogul<\/a> offers fractional ownership in blue-chip rental properties, providing investors with monthly rental income, real-time appreciation and tax benefits minus the responsibilities that come with being a landlord.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional-quality offerings without a massive down payment. Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios.<\/p>\n Sign up for an account today to browse available properties<\/a>. Once you verify your information with their team, you can invest like a mogul in just a few clicks.<\/p>\n If you\u2019d like to get in on the vacation property market, Arrived<\/a> allows you to invest in shares of rental homes and vacation rentals without the responsibilities of property management.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived lets you browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, just choose the number of shares you want to buy.<\/p>\n You can start investing in today with just $100<\/a>.<\/p>\n Bill Bengen, the creator of the 4% rule, called inflation the \u201cgreatest enemy of retirees.\u201d In a CNBC interview, he recommended adjusting your withdrawal rate annually to account for inflation, rather than sticking to a fixed percentage (4). This mirrors how Social Security benefits are adjusted to maintain purchasing power (5).<\/p>\n Ultimately, your ability to generate $12,000 a month in retirement depends on several factors:<\/p>\n That said, $3.6 million is likely a starting point if you aim to sustain a high standard of living for more than 20 years in retirement.<\/p>\n One of the best ways to build a millionaire lifestyle in retirement is to ensure you understand today’s markets. Financial literacy is key for everyone, but those who want to reach $144,000 a year in retirement will need to go deeper than the average person to attain such a high income level.<\/p>\n Investment advice tools like Moby<\/a> can help take some of the guesswork out of selecting stocks and ETFs. Over four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by nearly 12%, on average.<\/p>\n With their easy-to-understand formats, you can become a wiser investor in just five minutes<\/a>, all with their 30-day money-back guarantee.<\/p>\n Plus, you can get the full Moby experience for $0 when you sign up today<\/a> for a 7-day free trial.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Northwestern Mutual (1<\/a>); U.S. Census Bureau (2<\/a>); Empower (3<\/a>); CNBC (4<\/a>); Social Security (5<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"ArtemVarnitsin \/ Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content…\n","protected":false},"author":3,"featured_media":438476,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,7780,4061,255,700,696,711,67,132,68],"class_list":{"0":"post-438475","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dave-ramsey","10":"tag-jeff-bezos","11":"tag-personal-finance","12":"tag-retirement","13":"tag-retirement-savings","14":"tag-social-security","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115697005570568508","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/438475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=438475"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/438475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/438476"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=438475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=438475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=438475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}