Will Your Money Last During Retirement?

I’m too busy. I don’t make enough money. I don’t know where to begin.

If any of these retirement planning excuses sound familiar, then it’s time to address the elephant in the room. But how can you calculate the funds you will need for retirement when there are so many unknowns? The first stage of planning often raises many questions:

• How can I calculate the funds I’ll need during retirement if I don’t know how long I will live?




• At what age can I afford to retire?




• How much will I be able to spend per month during retirement?




• How much will I get from Social Security?

So let’s talk about it.

According to Chad Waddoups, VP of wealth management and business services at Mountain America Credit Union, here are some solid first steps to answer these questions.

1. Estimate your monthly expenses for retirement. How do you envision your retirement lifestyle? Do you see yourself hitting the golf course and traveling the world or living with family, gardening and spending time with grandchildren? Record the expected monthly expenses associated with the path you choose.




2. Consider your current health and family history. If you are healthy and your parents lived until their late 90s, you will probably have more years to cover expenses than if you have major health issues and your parents passed away in their 60s. If you are married, don’t forget to consider your spouse and their longevity as well.




3. Consider future medical expenses. Do you exercise regularly and eat your veggies? If you are in excellent health, you will probably have lower healthcare costs. If you smoke or have significant medical issues, you will need to plan for higher medical expenses.




4. Factor in long-term care. Will you likely need to move to an assisted living facility, receive memory care or in-home nursing services? Do you have long-term care insurance to cover those costs? Research the cost of these services in your area.




5. Estimate how much you will get from Social Security. Use this calculator at ssa.gov to estimate your monthly benefit. Then determine how much you need to save/invest to supplement that income and cover all your expected expenses.

Use this worksheet to estimate the amount you need to save for retirement and see if you are on track to meet your goal.

If planning for retirement seems daunting, Mountain America financial advisors are here to guide you through the process, making it as easy and clear as possible. The sooner you start, the more time your investment will have to grow.

Schedule your free consultation today by clicking the button below. You may also call 1-800-540-7670.
 

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