Have you ever wondered how to create a retirement budget? Nick Strain, Senior Wealth Advisor, helps answer that question while giving everyday life examples. Some key factors he discusses in more detail include:
- Estimate how much money you’ll need for the lifestyle you plan
- Consider future medical costs
- Factor in federal and state taxes on your retirement income
What does your ideal retirement look like? We’d love to hear about it—and help you get there. Visit Halbert Hargrove to learn more about how we help families on financial planning and more. https://www.halberthargrove.com/financial-services/retirement-planning/
One of the common questions we receive is how to create a retirement budget. And the first place to start is what are your current expenses, both on a monthly basis or annual basis, and then build from there. Next, you want to look at what kind of expenses are going to decrease in retirement, such as a mortgage or children’s expenses. Then, look to see what kind of expenses that’ll increase – like that one big vacation or the annual vacations you would take, increased hobbies, paying for a wedding or contributing to college plans for future grandchildren. Then, you want look at estimates for health insurance, whether you’re retiring before age 65 in Medicare or after 65 in Medicare with the supplemental and prescription. Then when you work with a financial advisor, they’ll help build that financial plan for you. That’ll help project what your federal and income taxes are going to be for depending on how you’re going take money from your different investment accounts.