You can make a successful Retirement Planning by matching your expenses and your income. While planning, you need the following information :
After compiling all these information, you can consult a financial adviser and make preliminary calculations to find out if you meet your retirement goals.
- Make a current expenses list. This list will give you an idea of your monthly expenses like transportation, food, housing, and utilities. You can also make an annual list of expenses such as education, insurance, medical bills, and travel. Ask yourself which expenses will reduce and which will increase.
- Think about your retirement lifestyle. Plan where will you live? Will you work part-time for some time? How often will you eat out, travel, and go to concerts or sports events?
- Social Security statement is very vital. Your statement estimates your benefit if you retire at age 62 or at a normal retirement age (around 65 or 66) or 70.
- Get an analysis of your employee retirement benefits. It includes a traditional pension which can pay you a fixed amount on a regular basis and assets in your 403(b), 401(k), and 457 or various retirement accounts from previous or current jobs. If you have a pension from a previous job, contact the employer to know about your benefits and the rules for receiving them. You can contact the Pension Benefits Guaranty Corp, a government-chartered agency if you canít find your pension from a previous private employer. You can get an individual benefit statement from your current and past employers. The statement summarizes your 401(k) or other similar plans status.
- Get your IRA information and make an IRA accounts list along with their current value.
- Make a list of your investment and savings accounts in financial services institutions, brokerage houses, banks, and credit unions. If you have forgotten your local or state government pension account, a bank account, or other financial assets, you can search the website of the National Association of Unclaimed Property Administrators.
- Make a forecast for your future retirement investments and savings. You can assess how much money to put in your 401(k), IRA, and others for retirement financing.
- Make an assessment of your longevity. Find out how long your retirement assets will last.