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The “Magic Number” that got Linda Evangelista out of bed could save your retirement.
If you didn’t already have a reason to hate them, I’m about to give you another.
They’re tall, beautiful, and superstars. They’ve graced thousands of magazine covers and in the 90s, their faces were everywhere. This particular group of models was different to the others before them. They spoke. They did talk shows, movies (not good ones mind you, but still movies) and became marketable brands, selling workout videos, make up and furniture. They made millions doing it.
“Even I don’t wake up looking like Cindy Crawford.”
Before them, models were simply models. After them, models were more than that, but never truly super. However, during their prime, Cindy Crawford, Claudia Schiffer, Noami Campbell, Christy Turlington and Linda Evangelista were larger than life and there was nothing that age-defying makeup and expert photoshopping couldn’t fix, could stop them.
They were bigger than movie stars and at the height of their popularity, Linda Evangelista told Vogue, “We don’t wake up for less than $10,000 a day”. The world hated her for it.
As this super group approaches their 50th birthdays, we tackle a very serious question. Will Linda Evangelista get out of bed in retirement?
“I don’t think makeup is rocket science or a cure for cancer.”
HOW MUCH IS ENOUGH?
Taking Linda Evangelista’s quote and using basic math, we can assume supermodels were making at least $2.6 million dollars annually ($10,000/day and assuming they took weekends off – rest is very important to stay beautiful).
If it takes $10,000 a day to wake up, which supermodels, if any, will have enough money to get out of bed at 65?
Everybody has their own magic number for retirement. Your number is going to be unique to your lifestyle and what you can realistically afford. Not everyone is going to require $10,000 a day. For many, $1 million dollars in retirement savings will do, with the remainder supplemented with pension income or government programs. Others may require less or much more.
In this case, we’re going to assume there is not a Models Local Union 322 pension fund and these supermodels are going to fund all of their retirement themselves.
“I never diet. I smoke. I drink now and then. I never work out.”
WILL THEY MAKE IT?
The big question; in order to determine if they are going to have enough saved, we need to start by knowing how much money they have now. So, with a little help from the internet, we have assembled a list of their net worth.
Supermodel Net Worth
Cindy Crawford: $100,000,000
Claudia Schiffer: $60,000,000
Naomi Campbell: $60,000,000
Christy Turlington: 30,000,000
Linda Evangelista: $25,000,000
For comparison purposes, Justice Ruth Bader Ginsburg’s net worth is reported to be anywhere from $4M – 18M. It was much higher but there are reports she and her late husband gave money away to family and charities.
Let’s assume the supermodels can use their total net worth to fund retirement. In order to fund a $10,000/day or $2.6 million annual retirement income without eating into their principal, their “magic number” is $86.6 million dollars, assuming they can earn 3% income on their investments.
Let’s examine Linda’s situation first as she is the closest to retirement of the group. She is currently a gorgeous 53 years young and has 12 years until she retires.
If we assume a conservative 6% annual return on her net worth, she will have $50.3 million dollars when she turns 65, which falls below the magic number of $86.6 million dollars. Based on her current and projected savings, she will only generate $5,782 a day of income.
“I don’t belong to you, and you don’t belong to me…”
Before Linda goes out and buys a more comfortable bed, the good news is that she has options with respect to adding to her savings before retirement, and her spending in her retirement years.
Based on her current situation, to generate $10,000/day in income she will most likely have to eat into her principal to do it. However, with some adjustments to spending (in retirement she will no longer need to spend money on headshots, walking lessons and other modelling administrative expenses) and other personal expenses, she should be able to adjust comfortably.
“Walking strengthens my legs, and I swing my arms to tone my upper body.”
The good news is that we should expect to see all of the other models out and about in retirement. Cindy Crawford, Naomi Campbell and Claudia Schiffer should all easily be able to generate their $10,000 day. Like Linda, Cindy Turlington may have to make some adjustments to her savings and expenses, but with the help of an investment professional these should be easily managed.
Speak to an investment professional today, and determine your own magic number and the steps you need to take to secure your own beautiful retirement.
Footnote: Justice Ruth Ginsburg is 85 and shows no signs of slowing down in “retirement”.