Planning for retirement can be exciting, but it can also be stressful. People often wonder if they will be able to live comfortably after they quit working, or how much they will need to set aside each month to be financially stable after retirement. In general, there are 3 things you should think about when planning for retirement.
You should consider:
1. The cost. It is important to calculate how much you will need on an annual basis once you stop working. Typically, you will need about 70% of your annual pre-retirement income to live off of. However, if you are anticipating extra expenses, such as medical costs or continuing education expenses, you may need to plan for 100% of your pre-retirement income.
2. The source. It is also helpful to consider where your annual post-retirement income will come from. This could be from Social Security, pension plans, retirement plans, annuities, and savings accounts. Investment savings can provide a major source of income, and you may need to calculate your expenses to determine how to meet your financial goals.
3. The plan. In addition, you should have a plan regarding your retirement. This involves calculating the amount you will need, determining where the money will come from, and putting a plan into action to be able to live comfortably after retirement. Whether you need to save more money or use a 401K retirement plan, this can help you be prepared for when retirement comes.
Dedicated Estate Planning Lawyers in Jacksonville
Owenby Law, P.A. guides clients through the estate planning process. We can help you determine a financial plan so you can live comfortably after you retire. It’s never too early to plan for retirement, and our attorneys can analyze your situation and provide informative services.
Contact us today for a free initial case evaluation.