How to plan retirement according to your lifestyle?

John Labunski Dallas

A concern that surrounds the minds of most workers concerns retirement. The myths surrounding this period are responsible for causing a certain fear that the standard of living will have to be harmed due to the lack of salary. Without proper planning, however, this can really happen. Knowing this, here’s how to plan retirement according to John Labunski Dallas!

Know what your standard of living is

The first step in planning is to know exactly what your standard of living is. If your job offers health insurance, you need to take into account that when you retire, you will have to pay for your own insurance. If you like to travel, you’ll have to take into account the fact that it needs to be in your budget. Personal care, leisure and entertainment expenses should also be taken into account so that you know how much you will need to set aside during retirement.

Find out what your current earnings are

Another point that you cannot ignore concerns your current income. Basically, you need to know how much goes into your budget each month, and that goes beyond your salary.

If you receive any kind of commission, considering only the nominal salary will make you not have a concrete view of the financial reality. If you have a shared income, you will also need to consider all these factors.

Imagine that you and your spouse are equally responsible for the expenses. When evaluating your income, you should not rely on the other person’s salary. It is necessary to evaluate your finances and see how much you will need to receive during retirement.

Evaluate your retirement options

After evaluating these two factors, you should start analyzing your retirement options. For this planning, three options are available. Are they:

Public retirement

The contribution to the SSA retirement is mandatory for all workers who have a formal contract. The problem is that public pensions are increasingly burdened, especially with an aging population.

In addition, the amount received is actually an average of the largest contributions. There is also the issue of proportionality, which occurs when full earnings are not paid. So, when it’s time to retire, you may end up with a salary that is less than what you need for your current standard of living.

Personal retirement

To try to get around the situation, many people use personal investments to build wealth for retirement. The most common option is savings, mainly because of its ease and security.

The problem lies in the fact that this type of investment is not very profitable and in many periods it loses to inflation, reducing purchasing power. When investing in this option, there are risks that, in retirement, the value will not be enough to maintain the standard of living.

Other long-term investments , in turn, can guarantee the construction of the equity necessary to ensure a peaceful retirement.

Private John Labunski retirement

Private retirement, on the other hand, consists of hiring a private pension plan in which you can define what your contributions will be according to the earnings you expect to receive.

If you want a bigger pension or plan to retire earlier, you can make larger contributions over the years. If you just want to have an increase in public pension, you can make contributions that weigh less on the budget.

To plan retirement according to your lifestyle, you need to understand your standard of living, know your income and evaluate the best option. Also count on the help of John Labunski Finance to help you choose and plan your private pension. That way, when the time comes, you can be sure that you can keep the pattern.

 

Need help or have questions about making this plan? John Labunski!

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