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Have you budgeted for retirement?

Posted September 11, 2013 in Advice Column

It’s important to think about what you’ll need in retirement before you retire.

Run the numbers. Often people need about 70 – 80 percent of their end salaries in retirement, but this can vary. So years before you leave work, sit down for an hour or so (perhaps with the financial professional you know and trust) and take a look at your probable monthly expenses. Online calculators can help.1

The closer you get to your retirement date, the more exact you will need to be about your income needs. You first want to look for changing expenses: housing costs that might decrease or increase, health care costs, certain taxes, travel expenses and so on. Next, look at your probable income sources: Social Security (the longer you wait, the more income you can potentially receive), your assorted IRAs and 401(k)s, your portfolio, possibly a reverse mortgage or even a pension or buyout package.

While selling your home might leave you with more money for retirement, there are less dramatic ways to increase your retirement funds. You could realize a little more money through tax savings and tax-efficient withdrawals from retirement savings accounts, through reducing your investment fees and getting your phone, Internet and TV services from one provider.

Budget-wreckers to avoid. There are a few factors that can cause you to stray from a retirement budget. You can’t do much about some of them (sudden health crises, for example), but you can try to mitigate others.
•    Supporting your kids, grandkids or relatives with gifts or loans.
•    Withdrawing more than your portfolio can easily return.
•    Dragging big debts into retirement that will nibble at your savings.

Budget well and live wisely. Creating a retirement budget makes a lot of sense. A well thought-out budget, (and the discipline to stick with it), may make a big financial difference. For help with budgeting for retirement, speak to a qualified financial professional.

Investment Advisor Representative with and Securities and Investment Advisory Services Offered Through Transamerica Financial Advisors Inc. (TFA) Member FINRA/SIPC and Registered Investment Advisor. Non-securities products and services are not offered through TFA. TFA and KHI Financial Solutions are not affiliated.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information should not be construed as investment, tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

1    www.smartmoney.com/retirement/planning/how-to-set-a-retirement-budget

Information supplied by Andy Hejlik, KHI Financial Solutions, 130 N. 25th St., 576-1800, www.khisolutions.com.





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