Income Planning
A great starting point when planning for retirement is to understand how you will replace your income in retirement.
Retirement income sources may include:
Social Security
Pension
Retirement accounts such as 401K, IRA or Roth IRA
Additional savings
Real estate
Developing a plan to maximize your income allows you to have an idea of how much you can spend. Of course, determining whether the amount of income you’re projected to have will be enough to meet your spending is key. To understand your spending consider:
How much you spend on average per month to maintain your lifestyle
Expenses that fall outside of your regular spending such as your dream vacation, home remodel, gifts to children and charities, etc.
Expenses at different life stages such as:
Go-go retirement years when you initially retire and have more energy for activities that can cost more
Slow-go years where you may spend less on activities
No-go years where enjoy simpler things