Don’t underestimate the cost of retirement. If you do, you will likely outlive your money. The costs of healthcare, housing, and transportation really add up when you’re not working. As you age you may need to see the doctor more often than you do now. You may need hearing aids, alternative therapies, or home healthcare. These are things that aren’t always covered by insurance need to be taken into consideration when you are planning for retirement.
No matter what you’ve heard, there isn’t a magic retirement number for you to target. How much you will need will depend on your health and your lifestyle goals. You can get an idea of possible retirement expenses by making a list of what you pay now.
- Household Expenses
- Insurance
- Car Maintenance
- Food
- Entertainment
After you retire you will have the same monthly expenses and may need home healthcare or assisted living, emergency home repairs, a new car etc. Once you have a ballpark estimate of your monthly expenses in retirement, compare that amount to what your estimated social security benefit and monthly retirement account withdrawals will be. Does the math add up?
There’s no better way to prepare for retirement than to work with a professional. At Alloy Wealth Management we are very passionate about helping members of our community achieve a successful retirement. Just call 800-689-3935 to schedule an appointment. We’ll help you with retirement income planning, tax planning, how to maximize your social security, and much more. We can’t wait to meet you!