Will you be able to retire? Good Question!

Imagine yourself as a 46-year-old woman married to a 48-year-old-man.  Both of you have a career.

  • Your combined income is around $250,000.
  • Savings in retirement plans totals about $400,000.
  • You would like to retire when he is 62 and you are 60.

Can you?

Unless you have prepared a retirement plan you don’t know.

There are a lot of moving parts that affect your retirement.  One of the biggest questions is how much it will cost you to live when you retire.  Each person is different; expectations for your retirement lifestyle are different than your neighbor’s.  Here are just a few of the things that factor into how much it will cost to live once you retire:

  • Your basic living expenses; your “needs.”
  • The cost of your “wants” and “wishes” above your basic expenses (travel, cars, weddings, education, gifts, etc.).
  • Life, disability, health and long term care insurance.

Then there are the other factors that determine what it will cost you to retire.

  • The age at which you want to retire.
  • The number of years in retirement.
  • What happens when one of you passes on?

What are your income sources in retirement?

  • Spousal income and, in two income families, the age at which each spouse retires.
  • Your pension benefits.
  • The age at which you apply for Social Security.

What are your personal investment assets to supplement your income sources?

  • The value of your investment assets at retirement.
  • The estimated return on your investment assets.
  • Your risk tolerance.
  • The rate of inflation during retirement.

The good news for this couple is that they have a decade or more to adjust their savings or their retirement goals.  Unfortunately, too many people leave the planning until too late.

The time to start planning is now.

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