Most people are focused on saving for retirement so they’ll have the money they need. However, ask most people how much they’re going to spend in retirement and they have no idea. To plan for retirement effectively, you need to have some sense of what your spending needs are actually going to be. Knowing what you’ll spend helps you know how much you need to save. Just like everything else in finance, figuring out how much you will spend in retirement is a big “it depends.” Most folks want to carry the same standard of living into retirement they had while working. Same standard of living, same cost of living, right? It’s not quite that simple. Retirement changes everything, including how you determine your budget. One common approach is to find your “replacement ratio.” This is found by taking the income you made immediately prior to retirement and figuring out what percent of that income you think you’ll spend every year. The amount you’ll spend is the amount you’ll need to replace every year in one way or another. Most people end up needing less income in retirement than they did while working, because, among other smaller reasons: You don’t […]
McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.
The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.