The Rule of 219

8 February 2010 by Matt, No Comments
The Rule of 219

Proverbs 15:22
Without consultation, plans are frustrated, but with many counselors they succeed.

Few things can be more humbling than a visit to an online retirement calculator. Me being the sales trainer for financial advisors that I am, you know I’m going to tell you that you should meet face-to-face with an advisor—perhaps one referred to you by a family member or friend. More on that later.

There’s one particularly disheartening rule we train in our program called “The Rule of 219.”

If you take a married couple, assume they eat 3 meals per day.  Let’s say the average cost of each meal is $5. And let’s assume they eat every day of the year, and that their retirement “lasts” for 20 years.

The math looks like this:  2 (people) x 3 (meals) x 5 (dollars per meal) x 365 (days in a year) x 20 (years in retirement) =$219,000

There you have it…it will cost you and your spouse $219,000 just to eat in retirement.

A pair of In-N-Out cheeseburgers.
Image via Wikipedia

The good news is that a $5 meal is likely a fast-food meal, which should greatly shorten your years in retirement. Now that’s a retirement plan.

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