Mon. Dec 4th, 2023

Matthew A. Treskovich

One of the most important steps in planning for retirement is to estimate how much income you’ll need to cover your expenses when you retire.

We call the point where your sources of retirement income are large enough to cover your expenses “financial independence.” Once you reach this point, going to work every day becomes a choice instead of a need. The goal of a good retirement savings plan should be for you to achieve financial independence. To know when you’ve reached financial independence, you need to know how much you will spend in retirement.

Three common mistakes people make in the retirement planning process are assuming their expenses will go down in retirement, underestimating the impact of inflation and including non-investment assets in their retirement pile.

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