by KYW's Salil Gutt
Retirement planning has two components. Unfortunately, most of us tend to focus on just one of them which is the value of our investments at the time of retirement.
Expenses in retirement, the other component, needs equal attention. The lower your expenses the less are the investments you need to support your lifestyle.
A rule of thumb is one needs about $300,000 of assets to get an income stream of $1,000 per month indexed for inflation over the years.
Housing, taxes and health care are generally the largest budget items for most retirees. Determining where you live is significant in controlling expenses. Downsizing to a smaller, newer home will cut your home repair expenses and reduce utility bills significantly. Income taxes can be reduced by focusing on tax free income. Also, lower property taxes and state income taxes are a
primary reason why people move to the sunshine states.
Where you live also affects health insurance premiums and expenses for long term care. This decline in real estate has a silver lining for those five or less years from retirement and interested in buying their retirement homes today.
E-Mail Story
Print Story
