NEW YORK (MainStreet) Happy retirees have three or more income streams, take vacations at least twice a year, have at least two children and drive an Asian made vehicle, according to a new book called You Can Retire Sooner Than You Think (McGraw-Hill Professional 2014) by Financial Advisor Wes Moss.
"Happy retirees typically budget 30% of their gross income for taxes, 20% for savings and 50% for living life, which encompasses all spending," Moss told MainStreet.
The financial bare minimums that all Americans need in order to retire happy requires $500,000 in liquid savings from 401(k) plans, IRAs, investments accounts and savings account as well as a paid off mortgage. The truth, however, is that 75% of retirement age Americans have less than $30,000 saved and one in six older Americans live on less than $22,500 a year.
To catch up, Moss advises enacting a dramatic lifestyle and financial change that resembles a Millennial lifestyle.
"I call it economic shutdown," said Moss, chief investment strategist with Capital Investment Advisors in Atlanta. "Move in with your parents or children or get a roommate, cut your spending and save every other dime. No dinner out, no cable television, no vacations."
The happy group of Moss' study earns roughly $98,000 during their peak earning years, which is above average income during their working life.