Scottrade recently polled 226 registered investment advisers on the topic and found that 71% don’t believe $1 million is enough for the average American family. Most said families need to save double, or more than triple, the amount.
Why would a person need $3,000,000 to retire? Does that take into account inflation? Does it assume very low interest rates in the long-term future, even though it might make such a figure even more difficult to accumulate?
It seems like a firm just polled investment advisors, who said that we ought to consume a large quantity of their financial products. I’m sure they would say that all Americans should all have $1.5MM in disability insurance too (the product that Ameriprise got in trouble for pushing).
They belittle the retirement calculators, but without actually running the numbers, how would a person plan? The approach suggested by this– use a one-size, ballpark figure–seems to be the opposite of the smart approach.