Do you have an idea of how much money you will need for retirement?
Have you thought about how you are going to pay for it?
Do you have a strategy in place that will generate the income you need to do the things you want in retirement?
Many people put these questions off until it’s too late.
So these questions become the most important things you can answer to help you begin to meet your retirement planning goals.
Whether you want to enlist the help of a qualified professional or try doing it yourself, don’t put it off any longer.
3 Step Plan
First – Figure out what your goals truly are. Take some time and give it some thought and write down what you truly want to accomplish and what is most important to you.
Second – Figure out how much these retirement goals will cost. Divide these into 2 categories Non-Discretionary Spending (Living expenses, taxes, health care, etc…) and Discretionary Spending (Travel, Hobbies, etc…)
Third – Figure out how you will pay for all of these expenses. You can divide this into 2 sections as well, your non-investment income and investment income. Once you have your non-investment income (Salary, Pension, SS, etc…) figured out you can then see how much your will need your investment income to generate to make up for the rest.
When you subtract your expenses from your income, anything that is left is your net savings. In many cases with retirees these days this is a negative number. This requires more cash flow from your investments to make sure you have enough money.
The main things to be concerned with when considering having enough money for your retirement are the total return on your investments and cash flow (after tax).
Year to year returns on your portfolio can vary greatly, that is why it is very important to properly allocate your discretionary spending and cash flow expectations.
In order to be successful with your retirement financial goals, you will need to be honest with yourself about what you can and cannot afford…and how much risk is wise to take on in your portfolio.
Here’s What To Do Now
At Calvert Investment Counsel we can help you uncover your main goals for retirement, figure out how much they will cost, and help you lay out a strategic plan on how you will pay for it.
Give us a call today at 410-435-3270 or click here to schedule an appointment with one of our retirement professionals to ensure that you are setup for an enjoyable, relaxing retirement without the worry of money.