Calculate Your Retirement Needs
- Cost of housing — Do you intend to stay in your current home?
- The length of your retirement — Have you accounted for a retirement of 20+ years?
- Earned income — If you continue to work, how much might you earn?
- Your retirement lifestyle — A typical guideline is approximately 60% to 80% of current income, but if you want to take luxury cruises or start a business, you may well need 100% or more.
- Health care costs and insurance — Many retirees underestimate health care costs.
- Inflation — It’s a good idea to tack on an additional 3% each year to help compensate for inflation.
Running the Numbers
Identify all of your potential income sources — Social Security, pensions, employer-sponsored retirement accounts and other personal investments. Don’t forget cash-value life insurance policies, income from trusts, real estate and equity in your home.
Also review your asset allocation. You may live in retirement for a long time, so try to keep your portfolio working for you — both now and in the future.
A New Phase of Financial Planning
It’s easy to become overwhelmed by all the financial decisions to be made at retirement. The most important part is to consult a qualified financial professional and/or a tax advisor to make sure you’re prepared for this new and exciting stage of your life.
Contact Lake Michigan Investment Services by going online to LMCU.org/investments, or call (616) 234-6358 for a free, no obligation financial review of your unique situation.
