Are you surprised that such a complex topic can be divided into just four sections? Once these difficult tasks are accomplished, you’ll have some much needed perspective that will help the rest of the process along.
According to a recent article in Forbes, “How Much Do You Need To Retire: 4 Things For Your Checklist,” these four decisions will help you clarify many questions about retirement and help more your planning forward:
Decide on your retirement age. This is easiest for many people, but the age you choose should align with your retirement savings and Social Security benefits. At a minimum, use Social Security payments as a baseline for your retirement income.
What kind of retirement lifestyle do you want? Jot down your estimated retirement expenses, like housing, food, insurance, medical expenses and a Medigap policy. The better you plan these estimates, the more you can project your lifestyle expenses.
Do you have a savings plan in place? Save at least 15% of your annual income, and you'll probably be able to handle most of your retirement expenses. Use a retirement calculator to see if you'll attain your savings goals.
Can you manage all of these moving pieces by yourself? We all like to think that we are smarter than the average person and can handle just about everything. However, there’s nothing wrong with asking for help with complex tasks. That includes retirement planning and creating an estate plan and a will. An experienced estate attorney at Cottrell & Jacobs will work with you to ensure that your estate plan and retirement plans are aligned.
Reference: Forbes (February 13, 2017) “How Much Do You Need To Retire: 4 Things For Your Checklist”