• Question
  • how do i make sure i have enough for retirement

    Asked by a 63 year old man from Chestnut Hill, MA on 3/6/2013

    how do i make sure i have enough for retirement

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  • Categories: Retirement Planning, How Much Do I Need?

Answers

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  • First, you must determine how much money you think you will need during retirement. Retirement will consist of usual expenses, such as monthly bills, groceries, mortgage payments, car payments, insurance, and taxes. Some of these expenses could be reduced or even eliminated during retirement, but there may be others that increase such as unexpected medical bills or you may have goals such as more travelling that should be taken into consideration.

    Once you have an estimate for your annual retirement expenses, determine what income you'll have. For most people, Social Security may be the only fixed income available, but some pensions are still available. The difference between your income and your expenses is the amount your investments or other sources of income will need to cover.

    In addition to speaking with qualified financial planner about your specific needs, goals and opportunities, you can also start here with this retirement calculator, https://www.newretirement.com/retirement-calculator/default.aspx. This will allow you to see how much you need to save, depending on your expenses, expected Social Security and the age you would like to retire.

    The asset allocation of your investment portfolio, whether the market goes through a downturn similar to the early 2000s or 2008, inflation and the timing of when you receive Social Security benefits are factors that could affect your specific goals. Depending on your specific needs and resources, a qualified financial planner can guide you through options that exist to help you make appropriate decisions concerning your retirement plans and mitigate the risks associated with your investments.

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 5/17/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.