Have You Budgeted for Retirement?

Creating a strategy for success.

Provided by: Nate Lewis

Run the numbers. There is a rule of thumb for retirees suggesting that retirement income has a target of 70-80% of the household’s end salary, though this can certainly vary. So, years before leaving work, sit down (perhaps with the financial professional you know and trust) and take a look at your household’s monthly expenses.1

The closer your household gets to retirement, the more exact you will want 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, your assorted retirement savings accounts, your portfolio.

Priorities. Next, think about what you want to do with your retirement. You may have envisioned travel, spending more time pursuing activities and hobbies, or even moving closer to family or close friends. While you may not be able to live extravagantly in retirement, finding your priorities will be an important part of how you approach your budget; you have to not only know how to take care of your basic needs of your household, but also have things you can look forward to enjoying.

It’s also important to remember that priorities change in life, and ideas that you are fixed on before retirement may change after a few years. Budgeting can offer your household the flexibility needed to shift gears, as your needs and desires change.

Road blocks. Having a budget in place can offer your household flexibility, but sometimes there are situations that come up that will challenge even the most careful retirees. A good budget will take health care costs in mind, and also be able to change over time, should they become more pressing. If you have a family, be mindful that gifts and loans don’t overwhelm your budget. Instead, consider creating a rainy day fund to call on, allowing you to set aside money especially for unforeseen expenses.

Budget well and live wisely. Creating a retirement budget for your household can be a big help in easing the transition from the daily grind to the golden years. For help with budgeting for retirement, speak to a qualified financial professional.

Schedule A Quick Review of Your Finances

See if you are on the right track.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 

Citations.

1 – fool.com/retirement/2018/09/07/how-much-income-will-you-really-need-in-retirement.aspx [9/7/18]

©2019 Lewis Wealth Management Group
(217) 337-5584
2506 Galen Drive Ste 104
Champaign IL 61821 
IMPORTANT DISCLOSURES: Investment advice is offered through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe”). Belpointe is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe Asset Management offers, or that or its personnel possess a particular level of skill, expertise or training. The information provided is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. This is not suggesting a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with advertising and marketing. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor’s own situation. Insurance products are offered through Belpointe Insurance, LLC. Lewis Wealth Management Group is not an affiliate of Belpointe Asset Management, LLC. Important disclosures related to Belpointe are available at http://www.belpointe.com. Additional information pertaining to Belpointe’s registration status, its business operations, services and fees and its current written disclosure statement is available on the SEC’s Investment Adviser public website at https://www.adviserinfo.sec.gov/.