Retirement Planning Guide: Part One

It’s never too early to start planning for retirement! In this two-part series, we’re going to take a look at eight important aspects of retirement planning that you need to be aware of. Today, we’ll focus on saving money, estimating your expenses, understanding your retirement options, and calculating your retirement budget. Make sure to check back soon for part two of this blog series.

Saving Money

One of the most important aspects of retirement planning is saving money. You’ll need to have enough saved up to cover your costs once you stop working, and the earlier you start saving, the better. There are a few different ways to save for retirement, so find one that best suits your needs. Some common retirement savings options include 401(k)s, IRAs, and investment accounts.

Estimating Your Expenses

Another important part of retirement planning is estimating your expenses. This includes figuring out how much money you’ll need each month in retirement as well as what kinds of activities you want to be able to afford. It’s a good idea to start tracking your current spending now so that you have a good idea of what your retirement budget will look like.

Understanding Your Retirement Options

There are a lot of different retirement options available to you, so it’s important to understand the differences between them. Some common retirement choices include staying in your current home, downsizing, moving to a retirement community, and traveling. It’s important to think about what you want most from retirement and choose a plan that best suits your needs.

Calculating Your Retirement Budget

Once you have an idea of how much money you’ll need each month in retirement and what your retirement options are, it’s time to calculate your retirement budget. This includes adding up all of your expected expenses and dividing them by the number of months in the year. This will give you a good idea of how much money you’ll need to have saved up.

Stay tuned for part two of our retirement planning guide, where we’ll discuss four more important steps in retirement planning! In the meantime, contact Lighthouse Financial in Brea to speak to our dedicated team of wealth management and retirement planning specialists.