Retirement Strategies
Will You Have Enough to Retire?
People often wonder as they approach retirement: "Will I have enough to retire?"
There are various factors that determine the answer, such as your income, your retirement age, and your planned retirement lifestyle. In addition, you should factor in the rising costs of healthcare and living.
Thanks to medical advances, people are living longer. Therefore, people are planning for longer retirement periods. How should you decide what financial retirement strategy is best for you? Your strategy can be fitted to suit your individual situation, goals, and needs.
Making a Retirement Budget
Expenses are another thing to consider when answering, “Will I have enough to retire?” Knowing how much money you’ll need in order to live comfortably in retirement is important. When meeting with clients, their anticipated retirement expenses is something we discuss.
You can estimate your income and expenses using an online retirement calculator. Include your day-to-day living expenses (food, housing, and health care) when calculating expenses. Also, remember to account for “extras.” For example, maybe you’d like to travel more, pay off your mortgage, or donate to charitable organizations. Additionally, you should create an “emergency fund” to have extra money for unforeseen events.
Inflation
Making sure you have enough to retire involves looking ahead. Another detail that you have to account for is inflation. U.S. inflation rates historically average around 3% per year. This increase seems small, but shouldn’t be ignored. The cost of things like food, transportation, and healthcare would roughly double after 25 years with a 3% increase. A retiree on a fixed income would effectively have half as much money to spend after 25 years of being retired.
Fraga Financial can guide you, taking into account your specific situation as well as all of these factors, and help you answer the question “Will I have enough to retire?”
Take The Steps to Protect Your Retirement Money
We can help you protect your assets and gain reasonable returns** in retirement. In today’s economy, many companies do not offer pensions. Retirement payouts for many people are considerably lower than expected. Additionally, options such as the market and mutual funds are high-risk. A market crash could drastically reduce your earnings.
In order to prevent losses and ensure a comfortable retirement, Fraga Financial offers insurance products that can protect your money while providing a reasonable rate of return**, such as fixed indexed annuities. Reach out to us to schedule a meeting, or attend one of our educational seminars.
