How do you know when you have sufficiently saved enough to retire, whether it be in investments, savings, or property?
I don't want to be like my parents and live day to day hoping to have enough.
Answers | 3
Equally important is, once you have a plan in place, follow it! Measure performance annually.
Are you ahead of plan? Great! Maybe you can give yourself a raise.
Are you behind where you thought you would be? Oops. Maybe you should skip the cost of living raise you were going to give yourself.
While it is possible to create a plan for yourself, it can get very complicated. It is better to spend some money and hire a Certified Financial Planner to create a plan for you.
Then add some margin to make yourself feel comfortable maybe 15-20% is good for you. Don't forge to factor in social security or other income you may still have in your official "retirement".
First, let me congratulate you for having the foresight to ask a question like this. You are the type of person who is so enjoyable to work with because you want to do the right thing and want to get the right kind of help to accomplish this. Great! Now, it is difficult to provide specific advice to you in this forum because the answer of course is to have a qualified CFP help you. I highly recommend you meet with someone in your area.
If you choose to go on your own, then the above answers are certainly good ones. I also like to determine your income needs and then determine an available guaranteed lifetime income stream from your assets. This gives a good comparison of what you need with what you can generate. Also, don't forget about the optimization of your Social Security benefits.
All the best to you Beverly.
Chris Lyding, CFP, CPA/PFS