Retirement
Calculating inflation, budgeting, and protecting your savings are key to ensuring you’ll have enough for retirement. At Mundt and Associates, we help you confidently plan your future.
Will You Have Enough to Retire?
It’s the most important question: Will you have enough to retire? Medical expenses are increasing, and even the cost of daily living has increased. So, how can you tell if you’ll have enough? Even if retirement is complicated, there’s hope. The question, “Do I have enough to retire?” can be answered, confidently. Here’s how. The first step is one of the most important: calculating a basic inflation rate.
Most experts agree that inflation hovers around 2%. Thus, compound your average yearly expenses by 2% each year. For example, let’s say you require $40,000 annually to support yourself. Technically, you would need $40,800 the following year to maintain your current standard of living at 2% inflation. You would then require about $44,000 after five years, and so forth. This is an essential factor to consider when calculating whether you will have enough to retire.
Budgeting
Another crucial aspect is determining your retirement expenses. We meet with our clients to discuss their anticipated retirement spending. Determine how much you plan to spend on necessities like food and housing. Next, don't forget to include the "extras." For instance, a line item for gifts or for dining out. Lastly, ensure your budget always has an "unknown" or "just in case" category. This will shield you from unforeseen expenses, such as unexpected medical costs. And if you don't end up using it, it might provide you with a means of generating more income each month. A little breathing room can go a long way.
Protect Your Retirement Savings
If you want to have enough for retirement, it all boils down to saving and avoiding losses. If you're able to find the right options for you, you may be able to both protect your principal and earn a reasonable rate of return.** At Mundt and Associates, it's our goal for you to be able to emphatically answer "yes!" when asked "Will you have enough for retirement?"
Contact us for a one-on-one meeting or attend one of our seminar events to learn more.
