Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Your Retirement Number

% of readers think this story is Fact. Add your two cents.


There used to be sayings and a rule of thumb that you need to save enough money to live on 75 to 85 percent of your pre-retirement income. But lately, financial experts are saying that your expenses pattern should determine how much you need to save for your retirement.

Rather than picking an arbitrary number based on the salary that you have negotiated with your current company, you should figure out how much money you want to live on each year during retirement. Multiply it by 25. All you need to do know is to do a backward calculation on the amount of money that you need to save.

It makes sense. Because even tho if you have a lot of money at the end of your retirement, if you have huge expenses as well it will not feel as much. The one critical approach to help you save for medicare plans 2020, and calculating your retirement number.

Below is the step approach to determine the amount of money that you need:

  1. Finance

You need to take a closer look at the amount of expenditure that you do. You need to ask whether you will have children that will depend on you for financial support after you retire, and you need to consider the cost of sending them to college and possibly helping support them through graduate school.

You also need to take into account the health condition for you and your spouse. Medicare handles some of the costs but there are a lot of out of pocket expenses that you will need to pay as well. This includes indirect medical costs like fitting your home to be wheelchair friendly.

You need to calculate as well if you have any debt, or if you have any home mortgage that will be fully paid by the time you retire. You also need to calculate how high your property taxes and homeowners insurance.

All of this estimated cost to your current budget, and you will be able to roughly get the picture of the amount of money that you need.

  1. Social security and pension income

The next step after calculating the amount of expenditure that you might have is to calculate the amount of social security and pension income that you might have. These two serve as an additional income when you retire. If your employer gets a pension, then you should ask them how much you will receive.

Your social security mails you a form once a year that tells you how much you are eligible to receive in retirement, based on your current contributions.

In this calculation, you can add another source of retirement income such as income from rental properties, royalties, and others.

In the end, subtract the amount of money that you need with whatever earning that you will have. Multiply the number by 25 and you will get the amount that you will need to withdraw from your portfolio.



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.