Retirement Number
Retirement is a beginning, rather than an end. Ideally, you retire when you are financially, emotionally, and psychologically ready. Why you are retiring is as important as when you choose to retire.
Numbers rule our retirement decisions, and we usually have questions about them. At what age will we stop working full time? How long of a retirement should we plan for? What do today’s low interest rates mean to our future income? Can we count on a reasonable yield from our portfolio? What percentage of our income should be guaranteed for life, through Social Security, pensions and annuity payments?
There's no magical, one-size-fits-all way to calculate a retirement number, but there are many numbers you need to consider:
- Basic Living Expenses (Current and expected)
- Discretionary Spending
- Healthcare Costs
- Legacy Objectives for Heirs and Charities
- Financial Support of Adult Children (weddings, grad school, etc.) or Aging Parents
- Debt
To help make sure your retirement income covers your needs and lasts for a lifetime, you need a custom plan. A financial advisor can help design a plan for you.