You’ve spent years putting away money so that, one day, you’ll be able to retire. Now that time is near, what you’ve saved is no longer a nest egg—it’s the source to fund your vision of retirement. And you can turn your savings and investments into a source of steady, monthly retirement income with a detailed income plan.
1. Picture your lifestyle
First, think about the lifestyle you want in retirement.
This includes thinking through how you will spend your time in retirement, where will you live, what is most important to you, what will your family look like, what are your preferences, what are some of the concerns, etc. Discuss with your partner to get a clear understanding on these important topics to make sure you have a clear
2. Determine your expenses and how much your lifestyle will cost
Some people aim to replace between 80% and 100% of the income they received while working; your exact retirement cash flow needs will depend on your lifestyle goals and personal situation. To get a better estimate, start with a budget worksheet separating essential or everyday expenses from those that are more discretionary—separate the needs from the wants.