Experts say to plan for 70-80 percent of your working income in retirement, but no one specific number suits everyone. Asking ESSENTIAL questions is key!
1. How much do you currently spend?
Many people are unaware of where their dollars go each month. Track your spending or use sites like MInt.com, Personal Capital or YNAB to help establish an average monthly expense. Become aware of how much you spend and where you spend it.
2. How will your spending change in retirement?
While some costs should decrease, other factors may bring additional expenses; i.e. travel, medical needs, raising grandchildren, the death of a spouse. It’s important to be realistic about goals and lifestyle needs and consider the various scenarios that could quickly change your reality.
3. Will your taxes be higher or lower during retirement?
Predicting tax policy is tricky, but there are some things for which you can prepare. For instance, certain distributions from retirement accounts could be penalized or even push you into a higher tax bracket.
4. How could inflation impact your retirement savings?
Life expectancies will vary, but in general, people are living longer than ever before. The longer you live, the more factors like healthcare and inflation are likely to impact retirement income. Even small changes in inflation add up quickly and should be factored into your retirement income strategy.
Contact us at info@SentryPacificFG.com or call (858) 384-5700 today for a free retirement kit including three separate guides addressing several important retirement topics.
This content is for informational purposes only and not intended to serve as a basis for financial decisions. Investing involves risk, including the potential loss of principal. Investment Advisory Services offered through Sentry Pacific Financial Group, LLC (San Diego, CA 866.684.2474), a registered investment advisor. Sentry Pacific and its advisors do not render tax, legal or accounting advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.
