Retirement Strategies
We can help you learn your options and the things that impact your retirement, so that you can say with confidence that you have enough to retire.
Do I Have Enough to Retire?
“Do I have enough to retire?” It’s a difficult question to answer. Especially because, as years pass, your situation changes. Our healthcare costs are rising, and so is the cost of living. How can you know if you’ll have enough? Well, we may be able to help you answer this.
What About Inflation?
One important thing to take into consideration? Inflation. You should apply the impact it will have to you. Most professionals agree that inflation is typically around 2% per year. So, take your yearly expenses, and add a compounding 2% to them for each year.
For example, let’s say you need $40,000 per year. At 2% inflation, you’d need $40,800 the next year to live the same lifestyle. After 5 years, you’d need around $44,000. And at 10 years, you need $49,000.
So, with inflation in mind, do you have enough to retire? Well, rest assured, there are ways to counter the impact of inflation on your retirement.
Budgeting
It’s also important to create a budget. You should lay out how much you’ll need in retirement. First, make sure you know the cost of basic essentials like housing and food each month. Next, you may want to include money for the “extra” things you might want to do to enjoy your retirement. And lastly, always have an “emergency” fund for unexpected expenses. If you don’t use it, it makes some savings you’ll have for that month. Having a little wiggle room is always good.
Preventing Loss
It’s important that you have a retirement strategy that earns you reasonable rates of return** to cover costs, and protects your savings. At the end of the day, preventing loss is key. If you want to know how to protect your principal and secure a reasonable rate of return,** contact us. We can have a one-on-one meeting with you, or you can attend a no-cost educational seminar event (which comes with a free gourmet dinner!)