When retirement comes up in conversation, some people try to “guesstimate” a large amount that they think will see them through their golden years. In fact, Kiplinger.com reported that in a survey last year, “more than 40% of workers said they determined their retirement savings needs by guessing.” Instead of guessing, Kiplinger recommends that you focus on monthly income in your retirement planning.
This approach to retirement income is not all that different to the way you would approach your finances before retiring. Many of your bills are probably monthly, so no matter what your pay schedule, you are already accustomed to thinking about expenses on a monthly basis.
Seeing how much you would have to live on as a retiree can help you to translate numbers from the page to real life because really, all of your hard work and saving is about being able to enjoy your life.
One investment firm found that when they gave participants in their 401(k) plan information with projections on how much monthly income the might get at their current rate of saving, a large percentage of participants decided to save more.
A fee-only financial planner can help you outline goals for retirement that focus on the kind of lifestyle you want to have. Claire Emory of Clarity Financial Planning, LLC sees herself as your advocate and understands your need for financial security as well as the peace of mind it can bring to your life and the lives of your loved ones. She values the trust that clients place in her and will work tirelessly to make your goals a reality, including offering honest reality checks so that you can learn from past financial successes and failures and move ahead. Claire will keep your big picture in mind and will make sure that you attend to important details that affect your financial future.