Have you given any thought to what money you will live on after you retire?
It is important to have a plan set out for what your retirement will look like financially.
When you retire.
When do you plan to retire? How much money do you have saved? The answers to those questions will be instrumental in determining the best way to plan for your retirement.
So, when do you plan on retiring? Will it be 5 years from now? 10 years? In some ways the government determines that for you, but you probably have a date picked out. Figuring out your retirement date, or as we call it, “R-Day” gives us two very important pieces of information. First, it determines the amount of time until that day. We want to figure out how long we can grow your money until you need to start taking income from it. The most important thing to do until that day is to accumulate. Grow your money as much as possible to make your r-day, and everyday after it easier.
How Long to plan for
The other point we can learn from your r-day is to get an idea of how long you might be need to take income. We can plan differently if you expect to be taking income for 10 years, versus 30 years. Part of this is to direct us on how aggressive we want or need to be.
The last and final piece we need for your Retirement Projection is how much income you will need. That is, how much money you will need from month to month after you retire. We strive to reach the amount you desire with plenty of cash flow. However, at the very least we try to reach the income you require to live on. Since we are not trying to accumulate at this point, your monthly income should be less than before retirement.