Is your real purpose for your money to retire comfortably? Are you ready to retire? There are no guarantees in retirement, just more risk. Are you prepared? You will need to consider some things.
Biggest concerns for retired persons:
- Will we run out of money and have to depend on our children or charity to live?
- Can we maintain our life style?
- Click to calculate your benefits
Planning for retirement:
- Estimates of what you will need range from 60 to 80 percent of your preretirement income.
- Are your plans to leave part of your estate to your children or charity?
- Have you considered your life expectancy?
- Withdrawal rate is commonly thought to be 4 to 5 percent annually of your available resources.
- Have you considered what assets you plan to use first?
- Have you prepared a projection of cash flow?
- Have you made a careful analysis of your withdrawal rate? Too much too fast will jeopardize the survival of your portfolio.
Steps to take:
- Prepare a financial statement of your current assets and liabilities
- Determine the value of your future Social Security income (internet site)
- Determine the future value of your company’s benefits and contributions
- Evaluate and project your future personal savings
- Determine amount of income that will be needed to meet your projected needs (6% annual return on $100,000 provides $6,000 of annual income)