Retirement Budget Spreadsheet – Your way of seeing the perfect retirement influences a great deal on the income you will need when you retire. Spending more time with family or venturing into new hobbies spend money on new priorities or hobbies, while they change their trade or continue working in the same industry give them a new source of money.
Retirement planning is not simply about accounting. Also prepare yourself to leave behind your work community and the personal, social and professional advantages that this provides. To make sure that this transition to retirement is okay, you have to plan how you will take on not only your savings but also your time.
Re-evaluate the budget for your retirement
Sources of income during retirement.
Usually, financial advisors rely on the rule that when they retire, they will need 70% to 90% of what they earn before they retire. It is likely that your income during retirement comes from several sources such as:
- Social Security
- Pension plans
- Plans offered by employers, such as 401 (k) and 403 (b)
- IRA Accounts
- Personal savings
If you decide to take part of your time to continue working or work as a consultant, you must include what you expect to receive and add it to your other income.
Your budget for retirement.
To get an idea of the desired results, draw up a budget for your retirement. Make a list of income and all expenses that you believe to have and withdrawn, including current essential expenses, discretionary expenses, and medical expenses. Consider any possible change in your way of life, such as relocating, moving to a smaller house (or buying another) or starting a new job.
If your projections that your expenses are greater than your estimated income, you will need to reduce your expenses. Or try to increase your estimated income, either by contributing more money to your retirement accounts or by delaying your retirement date. If your projections show that your income was estimated in expenses, the questionnaire becomes waiting longer before you receive income from your savings. Note: As a general rule, you will begin receiving income from your retirement accounts on April 1 of the year following your 70 th birthday.
How to collect your income for retirement.
An important part of the planning process is what power to turn into a source of income and when to do so. As a general rule, you should expect as much as you can before collecting social security and first make withdrawals of the savings for which you pay taxes.
- Collect social security benefits
You can start collecting social security benefits at age 62 and later at the age of 70. Keep in mind that the earlier you start a charge the amount of your benefits will be lower. If you work longer and charge later, your monthly benefits are higher.
- Deferred tax and tax accounts
In most cases, it makes more sense to make withdrawals for which you pay interest and dividend taxes each year. It may be best to spend these accounts early in your retirement to allow for growth of your tax-deferred tax accounts for tax-free Roth IRAs. There are exceptions to this rule, so it is advisable to consult with a tax advice and this strategy is the most appropriate for your particular situation.
How to calculate how much to charge your wallet each year.
Another essential rule is that you should not withdraw more than 4% of total savings in the same year, because you are at greater risk of spending your money very soon and, years later, not having enough. In addition, by setting the limit of your withdrawals at 4%, it helps increase your income later to cover higher spending for inflation.
Reduce your life risk bypassing your savings.
Perhaps the most difficult question to answer when planning your retirement is how long you will live. Although there are no insured your years, there are ways to plan so your savings will not run out as long as you live. Plan the financing of a long withdrawal of the sign of the game time sign, more aggressive in your investment strategy or choose options such as that of the income of life, which will help you to last longer the savings than life . Another way is to withdraw the minimum amount of savings in order to reduce the risk that the money runs out.
The more you do to make your income more stable and the returns on your investments more predictable, the more likely you are to enjoy the years of your retirement without worrying about the economic side.