Planning for Retirement
Most people see their retirement years as some distant shore over the horizon. Maybe you have a picture in mind of what your retirement should look like.
Do you want to purchase a yacht to visit that distant horizon? Or do you see yourself enjoying a nice home that you own near your family and friends? All these dreams cost money.
Depending upon when you retire, you can expect to be living in retirement for up to 20 years. You will need to plan carefully to have an income for that many years.
Plan to have an income in retirement that is about 75% of your income before you retire. That is the minimum amount. You may have the house paid for and your children grown-up. However, you can expect more medical bills and insurance costs.
To retire today you need about $500,000 to last through your retirement years. If you are twenty-five years old, you will need over $1,000,000 to retire in forty years. This is due to the increasing costs of goods and services.
You need to start planning and saving today in order to enjoy a comfortable retirement.
