Having a secure, fulfilling retirement is a primary goal for most of us. At some point in the future we will no longer receive a paycheck from an employer and will instead rely on the income from assets we have accumulated and saved, plus income benefits from defined benefit pensions, Social Security benefits, distributions from retirement savings plans such as 401(k)s, deferred compensation, sale of our business and other investments. For most people, the overriding and often primary directive of financial planning is simply etirement planning. However, planning for retirement is not a particularly easy process.
The retirement planning process involves using a retirement planning calculator and creating a road map toward your retirement goal and developing a plan to achieve that goal. The plan generally considers post-retirement budgeting, savings Randy Starks Jersey , tax management, debt management, pre-retirement budgeting and a host of other inputs all geared toward ensuring a quality retirement. However, planning for retirement takes time and judgment, because it involves many unknown variables. Among the top variables that may determine when retirement is feasible are lifestylefamily goals, longevity, future income tax rates, portfolio returns, the effect of inflation on expenses and future investment returns.
Let's review the basics of these variables as they relate to your retirement plan.
Lifestyle Goals
Would you like to travel? Own one home or two? What is your retirement vision? These questions and others like them are necessary to help create a budget for your specific retirement needs.
Longevity
Attempting to gauge how long we're going to live in retirement is a task that's becoming more and more difficult. Medical advances have led to increased life spans and continue to increase the mortality age. This is best illustrated by the Social Security system. In its original design, participants in Social Security were expected to live only a few years after they have begun receiving benefits. People live longer now, and life spans are increasing each year. We believe it is wise to project a retirement plan that assumes you'll live to age 100.
Future Tax Rates
Since we can only spend our aftertax income, it is imperative that we consider what tax rates our retirement income will be subject to. However Brian Hartline Jersey , as government bodies at all levels change with each election, so do virtually all tax laws, including property tax, sales tax, state income tax and the granddaddy of them all, the federal income tax. Taxes such as property and sales taxes should be adjusted to account for cost of living increases. One thing is certain taxes will exist in retirement.
Investment Returns
How much you can withdraw from your est egg each year is perhaps the most critical variable to retirement projections. Like the other retirement variables, the annual return on your nest egg will not be linear. As we know, the investments most suited for providing long-term income security into retirement are going to fluctuate. Financial markets can have long periods of up and down investment return cycles. We need continual income and that is the key. That's why we work toward constructing portfolios that can provide lifetime income security for o. Wholesale NFL Jerseys Wholesale Jerseys Cheap Jerseys From China Cheap NFL Jerseys Cheap Jerseys Cheap NFL Jerseys Cheap Jerseys
