/retirement INCOME- Planning
WHAT IS THE "TRADITIONAL RULE OF THUMB" FOR ESTABLISHING YOUR RETIREMENT INCOME?
In general, in order to live a comfortable independent life during your retirement years, the standard “rule of thumb” is that you’ll need to save at minimum 75 to 85 percent of your pre-retirement annual income.
As a result, the amount of your retirement savings should be in the range of 10 to 12 times the amount of your current annual pre-retirement income as well.
THE KEY TO HAVING GUARANTEED INCOME FOR LIFE IS TO DIVERSIFY
Prior to retiring just in case one revenue stream ends sooner than you may have anticipated, it is good practice to establish a retirement income portfolio that represents a variety of income sources you can rely on. This strategy is designed to ease any concerns you may have of outliving your retirement income while protecting you from running out of money.
WHY POSITIONING YOUR MONEY FOR A MORE TAX-EFFICIENT RETIREMENT IS IMPORTANT.
In general, taxes can consume on average 42% of a retiree’s monthly budget. Also, in most cases, taxes represent the true largest expense a retiree can experience during retirement. With the possibility of tax rates being higher at your retirement age, consider creating a more tax-efficient stream of tax-free income during our pre-retirement years,
If you believe that taxes are going to be higher at the time of your retirement, and if you're not aware of how to mitigate, eliminate or how to create a more tax-efficient stream of income contact us for a complimentary consultation.