Prepare Yourself With
Retirement Strategies
You May be Wondering...
"Do I Have Enough to Retire?"
“Do I have enough to retire?” This is a vital question. After all, healthcare costs are rising, everyday living expenses are up, even basic food and housing costs are higher and higher every year. So, how do you know you have enough?
Although there are many factors to figuring out your retirement, there is hope. We can help you find the answer to that question: “Do I have enough to retire?” One detail of doing that is calculating a basic inflation rate. Most professionals agree that it’s around 2% per year in increased costs. So, take your typical yearly expenses, and add a compounding 2% to that for every year.
For example, if you need $40,000 a year to cover your expenses, at 2% inflation, you’d actually need $40,800 the next year to maintain that same lifestyle.
Your Retirement and Inflation
You can work with an agent to help you determine how much income you’ll need each year when compensating for inflation. Meet with us at Hall Financial. We can help walk you through this process, taking into account your financial specific situation. Inflation is an important element in answering the question of “Do I have enough to retire?”
Budgeting
Determining your expenses and budget is another critical aspect of your retirement strategy. We discuss with clients their expected expenses in retirement. Do you have enough to retire? To find out, make sure you create a budget. First, determine how much you intend to spend on essentials such as housing and food. Then, add onto that “extras,” such as dining out, expensive gifts, traveling, etc. Last, you should definitely have a “just in case” section of your budget. You want to have money there to protect you in the event of unexpected costs. Additionally, it can give you a way of creating some savings each month. Some wiggle room goes a long way in helping make sure you have enough.
Is Your Money Safe?
It may seem as though stable retirement options are disappearing.
Many secure options such as CDs and traditional savings accounts hardly seem sufficient anymore. Company-offered pensions are almost nonexistent now. Even government workers are finding that they have to contribute more to their retirement plans than they would’ve before. All in all, many are discovering when they reach retirement that the payouts these options provide are less than they would’ve hoped for.
Riskier options like investing your money in the stock market or mutual funds haven’t proven ideal, either. A drop in the market could lead to your savings losing value. Many people, unfortunately, experienced this firsthand during the stock market dip in 2008, as well as in the recent one in 2020. Some people found themselves with far less money than what they’d originally saved. Many just watched hopelessly as their finances dropped. And even when the market recovered, some retirees’ savings didn’t. The money they’d spent years working for was lost. This is why it’s crucial to find ways to protect your principal in retirement. The right combination of products could provide you with guaranteed* safety, as well as a reasonable rate of return.**
Prevent Loss and Retire Well
We want you to be able to confidently answer “yes” when you ask yourself “Do I have enough to retire?” Are you looking for a way to both secure your principal and generate a reasonable rate of return** in retirement? We can show you how. Contact us, for a no-cost, no-obligation meeting. Or, reserve a spot at one of our upcoming educational seminar events. Learn about your options, decide your strategy, and retire well.