How Much Will I Need for Retirement? Get your numbers.
Chances are you’re more concerned than ever about whether you’ll have enough to retire. Given the uncertainty about the economy, stock markets, housing costs, interest rates, many of us are questioning our original retirement targets.
We’re living longer and longer, and our money has to go further. Perhaps you have been advised that the new magic number for retiring comfortably is an astonishing seven figures. So, how much is enough now?
Think about having an Income Plan, a paid off mortgage and savings.
However, as one moves to a more elderly age be aware of increasing medical costs which are not always covered by individual extended medical plans, which can reduce or wipe out savings in a hurry. Most of seniors will end up in a public or private nursing home. Private nursing home costs can wipe out most retirement savings in a hurry.
What you need to do is figure out how much money you think you will need during retirement, each year. You can use your current expenses as a starting point and try to figure out what your needs will be during retirement. Keep in mind that there might be trade offs. You might no longer have a mortgage payment, but you might travel more. Even though you might think that your expenses will be less during retirement, it doesn’t hurt to assume that your expenses will be similar, or perhaps even a little higher.
Everyone’s situation is different; don’t accept that what someone else has decided is the best choice for you. Do your homework, talk to your financial advisor. No one is impacted by your financial decisions more than you/your family.
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