How Much Money Do You Need for Retirement?

Are you unsure about how much money you need to retire? Matthew del Junco, President of Financial Planning and Senior Wealth Advisor at Liberty Group, is here to guide you through this crucial question. In this video, Matthew dives into retirement planning, offering insights and actionable strategies to help you prepare for your golden years.

To understand how much you need for retirement, let’s explore the basic retirement planning process.

Number one, assess your retirement goals.

Start by envisioning your ideal retirement lifestyle and create a clear and realistic goal that is very specific, it’s measurable, it’s achievable, it’s realistic, and time bound. SMART goals.

Number two, calculate your retirement expenses.

This is essential. Estimate what your essential and discretionary spending is. Don’t forget to factor in inflation and potential unexpected expenses, like medical emergencies or home repairs.

Number three, evaluate your retirement income sources or your guaranteed income sources.

Consider your Social Security benefits, pensions, retirement accounts, investments. Calculate the expected income from each one of those sources, whether that’s annually monthly, quarterly, and strategize when are you going to start drawing from them.

Number four, adjust and reevaluate.

Remember, your retirement plan is not static. Periodically reviewing your financial situation to adapt to the changing life circumstances is key.

Number five, work with a financial professional.

We recommend working with a financial professional to tailor your retirement plan to your unique situation. This can help you set realistic goals, navigate the complexities of retirement planning.

If you feel you’re behind on your retirement savings, don’t panic. Please don’t panic. There are strategies to catch up.

Number one, maximize retirement contributions.

Make the most out of your retirement accounts like 401(k)s, IRAs, employer matches. Consider delaying Social Security to increase your monthly benefits if possible.

Number two, adjust for spending.

Reduce current expenses by adopting a budgeting mindset and frugal living practices if possible.

Number three, seek additional income streams.

Diversify your income with side hustles, smart investments, or part-time work during retirement.

So, how much money do you need for retirement? There is no universal magic number that we can provide you that works for everyone. It’s a complex process that requires careful consideration of your goals, expenses, and income sources. Start planning early and seek professional financial advice to make informed decisions. If you need more information, be sure to read our blog, “How Much Money Do You Need to Retire?” Remember, the key to a comfortable retirement is thoughtful preparation. Take the time to assess your unique situation and create a solid retirement plan for your financial well being in your golden years.