Plan Your Retirement Today
While many factors influence the amount you need to save for retirement, one of the most important is how long you expect to live. If you’re retiring at a younger age, it may be necessary to speed up your savings, since investments have less time to compound. More info :theinvestorscentre.com
Another factor is how much income you can anticipate from sources other than savings, such as Social Security. Depending on your circumstances, you might want to consider a cash-value life insurance policy or a tax-advantaged savings account, such as an IRA or health savings account (HSA).
Plan Your Retirement Today for a Comfortable Tomorrow
In order to come up with an estimated amount for your retirement budget, you can calculate anticipated expenses, including housing, healthcare, food, clothing, transportation, entertainment and travel. You can also factor in any potential cost increases, such as inflation or the possibility of a reduction in Social Security benefits.
Once you have a target annual income figure in mind, you and your advisor can do an audit of your anticipated sources of retirement income (retirement accounts, Social Security, annuities, rental income, inheritance or the sale of a business) and calculate how much you might be able to withdraw annually during retirement.
It’s also a good idea to review your retirement plan regularly, especially after significant life events. These might include having children, getting married or buying a home, and changing your financial goals and expenses. Similarly, a financial planner can help you adjust your investment strategy to reflect changes in your risk tolerance and reassess your savings targets.