LiveWell Capital: How Am I Doing?

This simple question is one of the most common questions a financial advisor gets asked on their first meeting with a potential client.  This question gets at the internal thought of “How am I doing financially versus everybody else?”  The better question may be, “How am I doing versus my personal goals and aspirations?” but we will get to that later. The reason that financial questions are so intriguing is that most people don’t talk about money with their friends, and they often ponder if they are making the right moves and keeping up.  This article gives you a framework for how to think about where you are financially.

One of the biggest drivers of how someone is doing financially is how much of their income they save for the future. This simple measurement is the best way to predict the strength of an individual’s future financial circumstances. The combination of someone’s fixed (rent/mortgage, utilities, student loan payments, cell phone bill, etc.) and variable (dining out, entertainment, cable, hobbies, vacations, etc.) expenses are a big determinant in what someone will be able to save. In 2021, the Bureau of Economic Analysis determined that the national savings rate in America was just over 7%.  Below, we have 3 scenarios that will be beneficial to help benchmark your circumstances versus your peers.

Average American

This data is based on the average savings rate of Americans referenced above.  It is also built on average fixed expenses for a variety of income levels, but it is not indicative of any specific household income range.

Financial Advisor Recommended (50/20/30) Rule:

In general, this recommended level means that individuals can retire around age 65, and potentially help children with college and achieve other important goals

Aggressive Goal Setter:

This individual can typically retire early, pay for 100% of public or private college for children and can accomplish more elaborate long-term life goals.

We hope this summary is a helpful benchmark for your goal setting, but as mentioned earlier, the best benchmark is your goals and objectives.  Our happiest clients have defined the life that makes them happy and fulfilled and are striving toward that life.  Ultimately, only you and your financial advisor can determine those numbers.  Have fun outlining your personal plan. We recommend you define what living well is for you on your own personalized plan below:

This document is provided for informational purposes only and should not be interpreted as financial advice.  Please see your Financial Representative for specific recommendations to meet your personal needs and objectives.

Joseph B Beshear, Clark Everett Bixler, David Hamish Cochrane, Nicholas Fox, Timothy C Miller, Morgan L Rich, Andrew J Scarpitti, David M Schimberg, Bradley Scott Weeks, Tek R Wiegert and Kertsze Patrick Nunes use LiveWell Capital as a marketing name for doing business as representatives of Northwestern Mutual. LiveWell Capital is not a registered investment adviser, broker-dealer, insurance agency or federal savings bank. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries in Milwaukee, WI. Joseph B Beshear, Clark Everett Bixler, David Hamish Cochrane, Nicholas Fox, Timothy C Miller, Morgan L Rich, Andrew J Scarpitti, David M Schimberg, Bradley Scott Weeks, Tek R Wiegert and Kertsze Patrick Nunes are insurance agents of NM. Please visit www.livewellcapital.com 

Wondering if LiveWell Capital can help you reach your financial goals? Visit livewellcapital.com or call 513.366.3618 for more information.