Estimating Your Retirement Expenses Made Simple

https://www.bpgnetwork.com // Begin by translating your current budget into a retirement version. Separate essential costs such as housing utilities food transportation insurance and healthcare from discretionary items like travel dining hobbies and gifts. Remove work related expenses commuting clothing payroll taxes and add items that may grow in retirement such as Medicare premiums supplemental coverage dental vision and out of pocket costs. Include property taxes home maintenance car replacements and one time projects and be sure to note any debts that will be paid off at or before retirement. Project these expenses over a realistic horizon of 25 to 35 years and apply an inflation assumption of about two to three percent while stress testing higher inflation for the first decade. Estimate taxes on withdrawals from pretax accounts Social Security and pensions based on your state and filing status. Tally guaranteed income and compare the gap to a conservative withdrawal rate such as the four percent rule then add a contingency buffer of at least five to ten percent. Use a spreadsheet or planning software to iterate scenarios best case base case and bear case and revisit the plan annually or when life or markets change. #retirementplanning #retirementbudget #retirementexpenses #financialindependence #retirementincome #inflationplanning #healthcarecosts #taxplanning #longevityrisk #financialgoals

Видео Estimating Your Retirement Expenses Made Simple канала Jon Owens, CFP®