Don't Be Discouraged When You Fall Short of the Magic Number
Some of us try to walk 10,000 steps a day to stay fit. It seems to be the magic number with most fitness watches and apps. It turns out the 10,000 steps figure isn't based on any kind of science. Health researchers recently traced the number's origin to a marketing ploy for a 1960s Japanese pedometer. The manufacturer named their device "Ten-Thousand Steps" because it sounded good.1
These same researchers then looked at the number of steps each day that was optimal for general health. They found that the benefits rose significantly at 4,400 steps and increased as total steps ranged up to 7,500 per day. But anything above that number achieved only marginally better results.
But, somehow, we find the number 10,000 appealing. Even knowing its non-scientific origins as a health metric, we still feel a sense of accomplishment when our smartwatch tells us we've reached this daily step count.
A similar idea holds true for the magic number in retirement savings. The financial press loves to tout the exact amount that everyone needs to have in their nest egg to retire comfortably. The latest is from the Northwestern Mutual 2025 Planning and Progress Study, which purports that you need $1.26 million to retire comfortably.2 This figure has been touted repeatedly in the financial media and shared widely across social platforms.
This number is essentially meaningless. The $1.26 million amount was not calculated by a panel of financial experts. It was arrived at by averaging the guesses of randomly chosen Americans. And unfortunately, we live in a society where half of all adults cannot pass a basic financial literacy quiz.3
But this is not the only reason you can safely ignore this number. The amount you need for a comfortable retirement depends on a myriad of variables, including ones that might change unexpectedly. These include where you live, your general health, your housing status, your family situation, and what you hope to do in retirement (among many others).
If you hope to live comfortably on the beach in Hawaii, you're going to need a lot more than $1.26 million. However, if you are located in one of the many areas in the U.S. where the cost of living is relatively cheap, you can live very well on less.
Sadly, many people who see a number like $1.26 million become discouraged. They feel they will never be able to save anything close to that amount. And when something seems so far out of reach, people wonder if they should even try.
The good news is that when you work with us, we can not only help you walk through the most important variables needed to calculate your unique goal, but we can come up with the daily, doable steps you will need to follow to achieve financial success—and hold you accountable to reach your own magic number.
1. http://go.pardot.com/e/91522/s-a-day-or-fewer-2019071117305/96pw9d/2819401508/h/fDoQWXub7fyqBRHmWvGHFB3H4oWoQar6Rwit456qfEw
2. http://go.pardot.com/e/91522/ly-need-1-26-million-to-retire/96pw9h/2819401508/h/fDoQWXub7fyqBRHmWvGHFB3H4oWoQar6Rwit456qfEw
3. http://go.pardot.com/e/91522/cial-literacy-money-education-/96pw9l/2819401508/h/fDoQWXub7fyqBRHmWvGHFB3H4oWoQar6Rwit456qfEw
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