Before retirement, knowing your investment account balance, expected Social Security income, and planned spending is essential for ensuring financial stability. Millions are retiring this year, and it is crucial to assess personal finances. The investment account balance provides additional income beyond Social Security, which alone replaces about 40% of pre-retirement income. Experts suggest a safe withdrawal rate of 3.7% in the first retirement year. This comprehensive financial view helps determine if you're prepared to retire comfortably.
Experts recommend withdrawing 3.7% of your account balance in your first year of retirement. So, if you have, say $850K in your investment accounts, you would multiply that number to determine that you would have $31,450 per year in income from savings to spend.
The next big number that you must know is the amount of your Social Security benefit. Your Social Security payment is also going to be a crucial source of retirement income and, unlike your savings, this source of funds is guaranteed to last for life and has built-in protections against inflation.
You can't live on Social Security alone, so you should have additional savings to help you pay the bills as a retiree. Once you know the total amount you have invested, you can determine how much income your accounts will provide.
4 million Americans are set to retire this year. If you want to join them, click here now to see if you're behind, or ahead. It only takes a minute.
Collection
[
|
...
]