How Much Is Enough? The Simple Formula That Brings Peace to Your Retirement Planning
When I meet with people approaching retirement — especially couples in their mid 50s to early 60s — there’s one question that keeps showing up, quietly wrapped in worry:
“Will we have enough?”
They may not say it exactly like that. Sometimes it comes out as:
“How long will our money last?”
“What if one of us needs long-term care?”
“We’ve done what we could, but… is it enough?”
There’s a fog around this stage of life — and it’s not just about numbers. It’s about not knowing the destination. And I believe with all my heart: Clarity is one of the kindest gifts you can give someone.
Let’s start there.
🧮 The Financial Independence Formula
This formula brings that fog into focus:
FI Number=Annual Spending×25
It’s simple math — but it carries spiritual weight.
If you spend $60,000 a year to live a comfortable life,
Multiply that by 25.That’s $1.5 million.
That’s your “enough.”
This rule comes from decades of retirement research (commonly called the “4% rule”). It assumes that if you withdraw 4% or less of your nest egg each year, your money should last at least 30 years — often more, especially if you build in protections and guarantees.
📌 Why It Matters
This isn’t just about retiring early. It’s about retiring wisely.
Knowing your FI Number gives you:
A clear target instead of vague fear.
A way to work backward into a real plan.
Permission to stop comparing your portfolio to someone else’s.
In Proverbs 21:5, it says:
“The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”
You don’t need to rush. You need to plan — and planning begins with clarity.
🙋♀️ What If You’re Not There Yet?
Most of the couples I work with are somewhere in the middle:
They’ve saved something, but it’s spread between 401(k)s, IRAs, and Social Security.
They’re not sure how taxes will affect them.
They don’t want to run out… or outlive each other without support.
That’s where a wise strategy — with guardrails — makes all the difference. Through tools like Medicare planning, annuity income strategies, and Roth conversion timing, I help clients turn that FI Number into a reality they can trust.
💡 Want to Know Your FI Number?
Here’s what you can do this week:
Write down your real monthly spending. Not just bills — but lifestyle.
Multiply it by 12 to find your annual number.
Multiply that by 25 to see your Financial Independence target.
Then ask:
How close am I?
What income sources can I count on?
What risks do I need to protect against?
And if you want to walk through this together — not alone — that’s what I’m here for.
🌿 Final Thought
Financial independence isn't just about dollars. It’s about freedom from fear. It’s about knowing what God has entrusted to you — and stewarding it well.
And that starts with asking the question:
“How much is enough?”
And giving yourself the peace of knowing the answer.
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🖊️ Robin Bales is a Retirement Clarity Coach helping individuals and couples navigate Medicare, annuity income, and tax-smart planning with confidence and integrity.