Do you have a retirement plan tailored specifically for you? Do you know what to do now in order to reach your retirement goals? This blog will briefly address some of the initial questions but is not a substitute for financial advice from a financial advisor.
How much of my current income will I need to live off of in retirement?
Most recommendations are 70%-90% of our current income. However, each individual needs to factor in variables like:
a) Will your house be paid off?
b) Have you estimated the cost of potential health and medical expenses?
c) What kind of lifestyle would you like to live and what will the expenses be with this lifestyle?
d) Will you have assets like investments or a business in addition to retirement accounts that will pay you residual income?
These are a few questions to start with to ask yourself.
Do you know how to calculate the amount of income you need to save regularly for retirement?
There are "retirement planners" or "retirement calculators" online that could be used to come up with this figure. Some common questions asked are your present age, years you plan to spend in retirement, how much money do you currently have set aside for retirement, the age you want to retire, and other expected benefits like pensions to name a few.
So to start with, the two basic first questions to ask yourself when tailoring a retirement plan specifically for you are "How much of my current income will I need to live off of," and "How do I calculate the amount of income I need to save regularly for retirement?" Then you will be on your way to tailoring a retirement plan specifically for you.