Can You Count on Your Savings?
A common concern for Americans is how much money they will need to have saved in retirement and whether what they have saved will be enough to see them and their families through.
How Much Am I Spending?
The amount of money you need and are spending right now is a great way to determine how much money you will need in your retirement years. [1] Tracking your expenses over the course of a few months will begin to give you a picture of where your money is going on a month-by-month basis as well as allow you to notice where costs can be cut.
Your costs can also change over time. Things like car loans and home loans might be paid off by the time you retire, leaving your monthly costs quite a bit lower. [2]
What Will Your Income Look Like?
After coming to an understanding of your expected costs during retirement, you can begin to take a look at how your savings should be invested in an effort to generate your desired income level. Income from property or business investments, social security payments, and any other income-generating investments should all be factored in and compared to your expected monthly costs. Will your income be higher or lower than the expected costs of maintaining your lifestyle? If your income will be lower, you may need to explore some other options like adjusting your lifestyle or retirement timeline accordingly. [3]
How Long Should Your Savings Last?
Men and women who retire at 60 generally live between 20 and 25 years past the start of their retirement years. And while these numbers are estimates, with many Americans living shorter or longer, it can begin to give you a sense of how much time you should be preparing to be living off your savings without needing to take on additional work. [4]
Do I Need Long-Term Care Preparation?
Though long-term care isn’t needed by all retirees, if it does become a necessity, it can be a massive cost during your retirement years. [5] Fortunately, there are insurance options that offer the option for long-term care that should definitely be considered. And the costs of these plans will need to be factored into your retirement budget.
Maximizing Your Retirement Savings
The simplest ways to maximize the longevity and value of your savings is to work as long as possible, which means more years adding to your savings and less years drawing from them, and to push off beginning your social security benefits while the value of your benefits increases each additional year by 8% between ages 66 and 70. [6]
Preparing for your retirement is stressful and can be overwhelming, but you don’t have to do it alone. Working with a financial professional that can assist in creating a comprehensive financial plan for your future can be the difference between sleepless nights wondering if your savings will last and knowing you’ve done everything in your power to ensure the future of yourself and your loved ones. To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.
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