- What is your estimated life expectancy?
- Taking into account the age at which you wish to retire, how many years do you expect to live in retirement?
- The longer you live, the more money you will need. This also will affect your investment choices.
- Inflation estimate: 3%
- NOTE: This estimate is based on recent history. If you want to assure better outcomes, you may wish to increase this number.
- What is your investment style?
- Very conservative, conservative, moderate, aggressive, or very aggressive.
- What type of area do you plan to live in?
- Low-cost, moderate-cost, or high-cost.
- What do you want your lifestyle to be?
- For example, travel and entertainment costs may increase and you may have hobbies you wish to pursue.
- Do you plan to travel?
- Do you plan to work part-time during retirement?
- Will you have other sources of income during retirement?
- For example, Social Security, stock options, home sale, reverse mortgage, inheritance, spouse’s income, or sale of business.
- Consider all your fixed (essential) expenses.
- Consider all your discretionary (non-essential) expenses.
- Do you have any current loans or debt?
- For example, mortgage/s, personal loans, automobile/s, student loans, or credit cards
- What expenses will end upon retirement?
- For example, clothing costs, professional/licensing fees, or commuting expenses
- What new expenses will you have upon retirement?
- For example, health insurance premiums.
