Use Proper Planning to Help Determine Your Retirement Budget

Use Proper Planning to Help Determine Your Retirement Budget

The age-old question remains, what percent of your salary do you really need for retirement? Will you need 60% or 90%? Most people think that a reasonable number for retirement is around 70% of their salary. However, the reason people think that this number sounds right, is because it’s the most common guess that people come up with. But, your retirement income shouldn’t be based off of random guessing, you should consider using numbers and proper planning to help determine your retirement budget, and to figure out just how much money you will need based on your personal goals, expected lifestyle and expenses.

When you end up doing the math and proper planning, it will likely turn out that you need much more of your income to live comfortably in retirement, than you had originally anticipated. In some cases, it may be twice the amount that you originally thought, which makes it nearly impossible to prepare for your retirement income without proper planning and saving. The reason that you need so much more money in retirement is because you have more free time to spend your money. And, not to mention the fact that you’ll no longer be earning that steady paycheck. If you worked a 9 to 5 before retiring, then you likely had 8 hours a day where you probably weren’t spending too much money. This time may also have come with perks, like free travel or happy hours sponsored by your employer. Once you are retired, you must fill those hours with activities in which costs can add up quickly. That’s why it’s important to try and keep an eye on your expenses and retirement budget for the long road ahead.

After you begin to get a sense of what activities you’ll be doing during your free time, the first step to figuring out your retirement income is deciding your preferences. There is a big difference from living luxuriously to living modestly. You must budget if you will be going out to eat five nights a week or only one, and decide whether you will be ordering expensive wine or tap water with your meal. To try and better gauge how much money you will need for certain activities, you can break down your spending into seven categories; eating out, digital services, recharge, travel, entertainment and shopping, and basic needs. By setting a budget for yourself within each of these categories, it can help give you a better picture of your spending patterns in retirement.

Take the first step today by clicking HERE to schedule your no cost, no obligation review. Once you decide what your dream retirement looks like, you can get started on fulfilling those dreams by creating a financial plan that takes these dreams and your personal goals into account. At Peak Financial Freedom Group, we can help you figure out how much money you will really need for retirement, and align your actions with your intentions through an actionable and customized plan.

Peak Financial Freedom Group
2520 Douglas Boulevard, Suite 110
Roseville, CA 95661

DISCLOSURE:

All of the information presented here is provided and intended to be used for general educational and informational purposes only and is not intended as a solicitation for you to buy or sell any financial product. None of the information presented is intended to give you specific tax, investment, real estate, legal, estate, or financial advice but rather to serve as an educational platform to deliver information. The ideas, thoughts, and strategies presented here are those of the Management Team and provide an insight to our views on Peak Financial Freedom Group, LLC. Every detail in this website is subject to change without notice. Seminar, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC.

2nd Opinion Package available to Qualified Retirees and Soon-To-Be-Retirees may include free consultations, a free retirement income plan, risk analysis, and fee analysis. In addition, a comprehensive written retirement income plan may be provided to those who complete the entire process. Qualified Retirees and Soon-To-Be-Retirees must have a minimum of $500,000 of investible assets such as IRA’s, 401K’s from past employers, stocks, bonds, mutual funds, bank accounts, money markets, CD’s, etc., but DOES NOT include real estate, businesses, limited partnerships, 401K/retirement plans that can’t be moved to another plan, and other illiquid type assets.

All investments involve risk, can involve the loss of principal, and unless otherwise stated, are not guaranteed. Past performance is no indication of future performance and such information cannot be relied upon regarding future potential gains. Nothing is directly or indirectly guaranteed by this information. The planning and ideas presented herein are not suitable for all individuals or situations. Hypothetical examples are used to explain concepts and are not indicative of potential results you could receive; past performance is not a guarantee of future results; and results are not indicative of any particular investment or income tax situation; your results will be different and could be lower or higher. Consult your financial professional before making any investment decision.

Insurance product features and benefits, such as guaranteed lifetime income riders, are subject to contract terms, limitations, fees, and the claims paying ability of the insurance company issuing the contract. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of any other asset including an annuity may have tax consequences, early withdrawal penalties, or other costs and penalties as a result of the sale or liquidation. Different assets can be complex and carry fees, costs, and surrender charges. If you place assets under management with Fiduciary Solutions LLC, we are paid an advisory fee from Fiduciary Solutions LLC and if you purchase an annuity through us, we are paid commissions from an insurance company.

2019(1), 2020(2), 2021(3), 2022(4) and 2023 (5) Five Star Professional Wealth Manager Award - Dan Ahmad and Jim Files have been nominated for and have won the 2019, 2020, 2021, 2022 and 2023 Five Star Wealth Manager Awards. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Once awarded, wealth managers may purchase additional profile ad space or promotional products. Award does not evaluate quality of services provided to clients. The Five Star award is not indicative of the wealth manager’s future performance. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. Award winners represent an exclusive group of wealth managers who have demonstrated excellence in their field by satisfying 10 objective selection criteria. For additional information on the Five Star award, including a complete list of the 10 objective selection criteria and their research/selection methodology, go to fivestarprofessional.com.

Investment advisory services are offered through Fiduciary Solutions, LLC, a California Registered Investment Advisor. Insurance products and services are offered through PFFG Insurance Agency LLC, a licensed insurance agency (CA Insurance License #0N14013). Peak Financial Freedom Group LLC is a financial planning and umbrella marketing organization, which enables the provision of multiple financial services under one brand. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are affiliated entities with common ownership and control. Jim Files is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1620449) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0F06511). Dan Ahmad is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1491561) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0732913).

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