how much you need to retire anchor wealth management lanark

We all know we have to save for retirement, and most of us do. The most common ways to save for retirement are 401(k)s, Roth IRAs, or mutual funds. But how much do you actually need to be able to retire and live well?

Anchor Wealth Management is an investment planning company that specializes in helping people create comprehensive financial plans to meet their financial goals, both in the short-term and for the long-term. Our investment advisors have years of experience and training in not only financial planning, but also in long-term care and more. Below, we’ll take a look at some of the factors you will need to consider when trying to put a dollar amount to your retirement plan and goals. Contact either our Rockford or Lanark office to learn more!


Cost of Living

This is one of the big determining factors for retirees moving. The cost of living is what it costs to live, and it’s a lot more expensive to live in Hawaii than to live in Iowa. When you choose a location that has a low cost of living, your money will go further, and you’ll have more extra money to do the things you want to do, such as travel. Cost of living factors include:

  • Housing
  • Food
  • Taxes
  • Utilities
  • Clothing
  • Health care
  • Transportation

When trying to determine how much money you’ll need to retire, think about if you are planning a move and base your calculations off the current cost of living at that location.


Inflation is a factor that is outside of your control, but is a fact of life that must be taken into consideration when putting a dollar amount to your retirement savings plan. Inflation is in fact the rise of the cost of living every year. In our current economic climate, it’s about three percent. Bear in mind if a crisis of some sort occurs, this could jump. Inflation can play a big factor if you plan to be retired for 20 years or more. It can definitely add up quickly. In essence, you need to save more every month in your retirement savings plan because of inflation.

When you invest your money with one of our professional investment advisors at Anchor Wealth Management, we can help you get ahead of inflation and help make your money grow in your favor. Call today to learn more.

Health Care

The big elephant in the closet is out. There’s no doubt that as you age you will see the doctor more, leading to an increase in health care costs. A recent report by Fidelity states that the average couple will need about $285,000 to pay for health care costs when they retire. Luckily, there are ways to help you pay for these:

  • Medicare. Everyone is eligible over the age of 65, so be sure to apply
  • Health saving accounts for those currently enrolled in a high-deductible health plan
  • Long-term care insurance, which covers in-home care, nursing home care, and assisted living facility care
  • Save as much as you can

Admittedly, this cost will be extremely hard to calculate because you could be extremely healthy in retirement with no healthcare problems, or you could be sick and need lots of medical care. This is where having long-term care insurance in case you do need to go into an assisted living facility, nursing home, adult day care services or have in-home care can be a lifesaver. Contact the financial advisors at Anchor Wealth Management in Lanark and Rockford to learn more.

Social Security

While everyone who has put money into Social Security should theoretically be able to get money back, the reality is that Social Security may not be there when you retire. The Social Security fund is predicted to run out of money in 2034. However, assuming Social Security will be fixed and the money will be there when you retire, the longer you wait to claim your retirement benefits, the more money you will get. Most people understand that you can’t live off Social Security. The nice thing is that you can calculate exactly how much income you will receive if you know how old you will be when you retire.

Retirement Lifestyle

Many people want to be able to travel when they retire now that they have the freedom to do so without being tied down to a home. Others just want to enjoy retirement near family. No matter which lifestyle you want, it’s important that you plan for it, which is why sitting down with a financial advisor is so very important. You’ll want to think about your expenses when you retire. We work with our clients to help them have their mortgage and vehicles paid off before they retire, but some other expenses to consider and plan for include travel expenses, giving, amount spent on others, and more. Your lifestyle is the one factor we’ve mentioned that you have complete control over. You can choose to live a simple lifestyle or an extravagant one. As long as you plan for it, you can be extremely comfortable come retirement time.


Anchor Wealth Management has two locations to better serve you, in Rockford and Lanark. Our mission is to help ensure you don’t outlive your money and you have the money you need in retirement to do the things you want to do. The only way to do this is with a retirement savings plan, which is part of your comprehensive financial plans for your future.

When you sit down with an investment advisor, we’ll talk about your life goals and what you want to see in your future. Next, we’ll make some recommendations based on where you are at and where you want to go. Then, we’ll put together our action plan and work diligently to ensure your comprehensive financial plan is meeting your needs. Bear in mind your plan will probably change many times as your unique life circumstances change. Having financial planners who can help adjust your course when needed can make all the difference. Contact our team at one of our offices today!