You probably have a lot of questions about saving for retirement. How much will I need? What year will I retire? What are the best ways to save for retirement? Our team at Financial Consulting Group is here to help.
In retirement, your income would stop, but the spending never ends. If the assets you use in retirement to generate income do not cover the expenses that a household is used to, you will have to compromise on the quality of life you once used to. Expenses can be classified as mandatory and discretionary.
Mandatory expenses are groceries, utility bills, fuel, salaries of staff, medicines and such expenses that you cannot live without.
Discretionary expenses are what you would spend on entertainment, eating out, and travel, and expenses that usually occur by the lifestyle you live.
When income increases and more money is available after meeting mandatory expenses, many households increase the discretionary expenses. Once you get use to these expenses, they create a lifestyle. Start planning as soon as possible so you can keep your lifestyle the same after retirement. Have a set in stone plan for what you will do after retirement. It is never too late to save for retirement. Many people express regret that they did not start early as suggested by financial planners. Contact us today to help you start planning! Call us today at (504) 835-1707.