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How much money do I need to retire?

This is probably the question financial planners are asked the most when clients walk in to discuss retirement freedom. A simple question, in theory, but not an easy answer. Understanding what your optimal retirement savings are means peace of mind in your golden years.

Wall Street’s focus has shifted away from the economy to a degree. In part, this evolving emphasis is due to the calendar, as data on manufacturing, employment, homebuilding, and producer and consumer prices are already in the books for this month, although reports on consumer confidence, the gross domestic product, and durable goods orders still are a

The employment outlook remains reassuring. To wit, the nation added 209,000 jobs in July, the fifth time in seven months this year the gain has exceeded 200,000. Moreover, the jobless rate eased from 4.4% to 4.3%; the labor force participation rate edged up to 62.9%; and average hourly wages rose by nine cents, following a nickel gain in June.

The widely expected second-quarter economic comeback arrived on schedule, as a report issued late last month showed that the nation’s gross domestic product had increased by 2.6% in the second quarter, up from a listless 1.2% pace tallied in the first three months.

The economic fundamentals remain largely supportive. On point, the past few weeks have seen notable recoveries in housing starts and building permits (up 8.3% and 7.4%, respectively, in June), reassuring stability in new and existing home sales, a solid upswing in consumer confidence, and a better-than-expected 0.6% increase in the leading economic indicators

Have you ever stopped to wonder why 60 is considered retirement age? Some public services - like the police force in certain countries - require you to stop working at 60.

The consumer is retrenching. First, it was the carmakers reporting lower sales for June and revising their full-year forecasts downward. Then, it was the retail sector that posted declining activity, with slippage in receipts at restaurants, sporting goods outlets, and department stores. Finally, a recent issuance showed a drop in sentiment among the public.

The good news is coming on several fronts as the third quarter proceeds. First, the Institute for Supply Management reported a jump in manufacturing in June, boosted by a surge in new orders. Then, that trade group issued data showing a pickup in non-manufacturing, led, as well, by strengthening orders.

If you’re just starting to take charge of your financial future, it can be stressful approaching financial planning with confidence. Do you ever talk to your bank or financial manager and think that they’re speaking a foreign language?

The third quarter is likely to begin in much the same way that the second three months ended. That is, we expect some reports to show increasing economic strength, while others suggest the economy is proceeding less smoothly.