Retirement
Retirement
It’s a crucial question to ask yourself; “Will I have enough to retire?” Healthcare costs are rising. Everyday living expenses are up, too. Even basic food and housing costs are rising more and more each year. So, how can you know if you’ll have enough? It’s a complicated process. Although there are many pieces to the retirement “puzzle,” there is hope. We can help bring to your attention factors that will impact your retirement, and tools you can use to help your long-term success. Reach out to us today to learn more.
What About Inflation?
One thing we'd recommend–calculate a basic inflation rate.
Most professionals agree that inflation hovers around 2% per year. So, take your typical yearly expenses, and add a compounding 2% to that each year. This can help you estimate how much you’ll need years from now. For example, let’s say you need $40,000 per year to cover your expenses. At 2% inflation, you’d actually need $40,800 the next year to maintain the exact same lifestyle. After 5 years, you’d need around $44,000. And, after 10 years, your needs jump to somewhere around $49,000. So, it’s important that you have a way to earn a reasonable rate of return.** If you meet with us, we can help walk you through how to do this. Inflation is an important piece of the puzzle. Thankfully, there are ways to compensate for it.
Expenses & Budgeting
Determining your yearly expenses is another critical aspect of planning for retirement. We work with clients to discuss their expected retirement expenses. You might be yourself asking, “Will I have enough to retire?” To find out, make sure you create a budget. First, lay out how much you intend to spend on the essentials such as housing and food. Next, be sure to include the “extras.” For example, dining out, gift-giving, or travel. Finally, always have an “unknown” or “just in case” section in your budget. This will protect you in the event of unexpected costs, like a medical emergency. This can also give you a way of creating some additional savings each month. A little breathing room goes a long way.
Is Your Money Safe?
It seems as though many stable retirement options are disappearing. Company-offered pensions, for example, are almost non-existent today. And secure options that remain, such as CDs or traditional savings hardly seem sufficient. In the end, when retirement arrives, many discover that the payout from these types of options is less than they had hoped for. Riskier options, meanwhile, such as market investments or mutual funds, aren’t ideal either. If the stock market crashes, your nest egg’s value could plummet, too. Unfortunately, many people experienced this first-hand in the stock market dips in 2008 and in 2020. Many people just watched helplessly as their finances continued to drop. And, even when the market recovered, some retirees’ income didn’t. What had taken them years to grow was suddenly reduced. This is why learning about ways to protect your principal* is so important.
Prevent Loss and Retire Confidently
With the right combination of products, you could protect the money you’ve worked hard to save, and get yourself a reasonable rate of return** to ensure you can cover your expenses. We want you to feel confident answering “yes,” emphatically, when you ask yourself, “Will I have enough to retire?” Let us show you how to do just that. Contact us to schedule a no-cost, no-obligation meeting. Or, if you prefer, attend one of our educational retirement seminars. Learn all your options and secure your future.
