Tip:
Highlight text to annotate it
X
When building a retirement nest egg there’s a number of questions that come to mind the
first one is what will your lifestyle be like in retirement?
Are you going to travel all over the world or are you going to sort of stay put and spend
way less than you did when you were working? There are estimates that vary what as to what
percentage of pre tax income that you need in retirement.
Some experts say it’s as high as 90 percent if you are going to have a very active lifestyle
in retirement full of travel. To some as low as 50 percent if you’re gonna really curb
your spending. The other question is how many years do you
have to save? Is it 5, 20, 30 or 40 years or more? What’s the risk tolerance in terms
of how can you afford to invest money? If you have a longer period of time, obviously
you can afford to take more risk.
Each person’s situation is very very different. That’s why it’s critical to sit down with
financial advisor. Take a look at your own specific objections, your time horizon and
your lifestyle needs upon retirement and then put together a plan that is best for you.