What You Will Discover: an easy way to view retirement income
Skill Level: Easy
What do you think the main purpose for retirement planning is?
Such a grand question! Personally, I think it simply centers upon determining exactly *how* much money you’ll need….
After you retire…..
And no longer have steady work-earned income coming in.
Right?
But now a fascinating question arises!
If you’re now on a set income……
How do you know if you have *enough*?
Superb question indeed…. one way to answer that is to discover YOUR answers to:
Question 1.) When do you *want* to retire?
Now?
In a year?
In 5 years?
15?
25?
Never?
Yesterday?
Lets say you want to retire in 10 years….
That’s 10 years you ideally have work money coming in…. and can invest a good portion of that in your IRAs and other investment vehicles.
Let’s say instead you never want to retire… hopefully you’ll always have income coming in but….
What if you experience a horrible injury?
What if what you WANT….
Turns out to be impossible?
You simply have to plan for the unexpected. Never be complacent…. start planning for your retirement TODAY.
And that brings us to:
Question 2.) How much do you NEED to retire?
Well?
How much money do you spend every day? Every month?
Take how much money you spend a month….
Your bills…
Your entertainment….
On your kids…
On your grandkids….
Multiply that by 12 and boom!
You have how much money you’ll need every month to successfully retire.
But again remember….
Life can happen at a moment’s notice… so the unexpected (health crisis, divorce, being hit by an asteroid, etc.etc.etc.) can cause you to require far more money in a shorter amount of time… than you might think.
Which brings us to our last question….
Question 3.) How much emergency cash can you squirrel away?
The rule of thumb used be, have at least 6 months’ worth of expenses available at a moments notice.
Nowadays, it’s grown to a full 12 months (in an ideal scenario).
One way to assist in this is to take out a small amount every week – send it to a different savings account, keep the money in a safe hideout, etc., As the weeks go by, your at-hand cash will increase without you hardly noticing it.
And that means should an emergency happen….
You won’t be left up the paddle without a creek.
Good stuff!
What You Just Learned)
You learned 3 questions you can answer for your retirement planning – When you want to retire, how much money you need TO retire, and how much emergency cash you can squirrel away.
Your Next Steps)
Your next steps are to come up with *honest* answers to the above! If you’ll need at least 10K/month to retire….
What sorts of investing can you do NOW with the time you have left until retirement….
To help ensure you will meet your goals?
Take some time now to figure it out… your future you will be happy you did.
Take control,
— MB
GRAB IT NOW