One of the most important questions you should ask yourself right now is: “Am I on track for my desired retirement?” There really is no one-size-fits-all answer to retirement planning. To help you determine how much savings you actually need for retirement, answer a few simple questions.
Question #1: What kind of retirement lifestyle do you want to have?
No matter how old you are, you can determine what you want to do when you retire. Be as specific as you can so you can determine what expenses to expect. If you plan to travel the world or have a vacation home, that may require a larger budget than simply keeping close to home and spending time with family and friends. You’ll also want to consider what your hobbies are now – and ones you’d like to learn. Once you determine what you want to do, you can start crunching the numbers to see how much you’ll need each year.
Question #2: How much debt will you have?
Start with the loans you currently have. Do you plan to have them paid off by the time you retire, or will you continue to make payments? The lower your debt load, the better. That way, you can use the money you save to do the things you want to do – not pay bills.
Question #3: Will you have any other income to count on?
Are you one of the lucky few who has a pension to count on during retirement, or do you plan to have a side business or other investments available to keep your income stream flowing? Most people will have some Social Security payments coming in – but that will likely only cover a small portion of your expenses.
Question #4: When do you plan to retire?
People are living longer than ever before – that’s a fact. You will need to make sure you consider that when you decide when you’re going to retire. Really, what that means to you is if you want to retire as early as possible, you may need to adjust your lifestyle needs in order to make it work.
Whatever your answers are to these questions, the best thing you can do is begin your retirement savings plan today. Let BancorpSouth help you today by calling 1-888-797-7711 or by viewing our investment philosophy. Your future is important to us!
© Fintactix, LLC 2017