How much money do you really need for a comfortable retirement?

Image source: LOM Financial

There are several options available to make sure that you’re on the right track of investing for your golden years. While all these preparations are necessary, there is one crucial question that almost everyone fails to answer until it’s already too late: how much does one need to save for a financially secure retirement?

The answer will depend on the following factors that determine the amount that you need for retirement. For instance, where you plan to spend your golden years is a huge determinant of whether or not your savings will last for years.

A million dollars is usually the estimate for a comfortable retirement plan, but recent findings suggest that it’s not the safest number. This is because the buying power of your $1 million will vary depending on which state or country you decide to settle in.

In sunny Hawaii, for instance, you can live comfortably for almost 12 years with your million-dollar retirement fund. If you’re in Mississippi, you will be able to live through your golden years worry free for 26 years.

Other factors that determine how much one needs for retirement are related to their future lifestyle choices as well as spending habits. According to experts, it’s not really about how much you earn; it’s more about how much you spend. Start by evaluating your yearly expenses at present, and multiply that by the ideal number of retirement years and you’ll have an idea of how much you’ll need.

The last factor is about looking at the guaranteed income sources after retirement. While knowing that you can rely on these regular and consistent financial sources can be comforting, make sure that you’re not totally depending on them throughout your retirement years.

US-China Trade War: Countries most vulnerable to the impending fallout

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Just like every war in the history of mankind, there are no winners – only casualties. Both sides suffer from the consequences and the most vulnerable ones are often left to deal with the aftermath. The same is true with the on-going US-China Trade War, that according to experts like LOM Financial, the clash between these two economic powerhouses could cause ripples to its neighbors and other export-oriented countries.

The fallout from the ongoing trade war between the US and China is finally making its presence felt especially on Asian economies. South Korea, Malaysia, and Taiwan’s respective GPDs rely on exporting goods and services to China. The same goods are used in the Chinese manufacturing industry to produce products, such as automobiles and electronics that are then shipped to the United States.

The rising uncertainty and instability between the trade relationship of US and China can dramatically disrupt the global supply chain production. According to a simulation done by the Bank of England, the developing rift could hit up the global GDP by 2.5% over a period of three years, with the economy of the UK suffering from an overall 2% hit to growth.

Economists recently released a new model that revealed the top countries that will be most affected by the ongoing trade war. The ranking was based on how they are linked on the global value chain as well as how much their economies depend on the entire trading network.

Luxembourg, one of the most export-oriented economies in the world is largely dependent on trade – and that’s why it tops the ranking for the most vulnerable economies to the fallout. Taiwan, Slovak Republic, and Hungary could also suffer greatly from the trade war’s ongoing tariff impositions.