"Retirement is a long-term goal that often requires multiple decades of planning. You have to save money, invest it, and calculate how much you'll spend each month when you retire. There are plenty of moving pieces that influence your ability to retire, but a few questions can help you gauge if you are on the right track. Asking yourself these three questions can unveil your retirement progress and help you craft a strategy."
"The first step is to assess your income streams. The biggest income stream most people have is that job. However, their income streams will look different in retirement. While you will receive Social Security, it's best to plan your retirement as if you won't get Social Security. That way, you aren't depending on the government to subsidize your retirement lifestyle."
Retirement requires decades of saving, investing, and estimating future monthly expenses. Plan income streams by identifying withdrawals from retirement accounts, potential dividend income, high-yield savings, and not relying on Social Security. Aim for a higher income target rather than the bare minimum to preserve lifestyle flexibility. Address debt proactively by eliminating high-interest credit card balances and evaluating whether to accelerate lower-rate mortgage payments. Consider side hustles, downsizing, or sacrifices to pay off debt faster. Greater progress on debt reduction and consistent saving now will make retirement transitions smoother and increase sustainable cash flow in retirement.
Read at 24/7 Wall St.
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