💰Withdrawal rates and declining portfolio values can pose challenges in retirement.
🏡Housing costs, such as mortgages, property taxes, and maintenance, should be considered when planning for retirement expenses.
🔢Accurately estimating current and future expenses is crucial for a successful retirement plan.
📅Delaying Social Security benefits can significantly increase retirement income.
🌍Inflation and rising healthcare costs must be factored into retirement planning.
What is withdrawal rate in retirement?
—Withdrawal rate refers to the percentage of your portfolio that you withdraw each year to cover your expenses in retirement.
Why is estimating expenses important in retirement planning?
—Estimating expenses accurately helps ensure you have enough funds to cover your lifestyle and unforeseen costs in retirement.
Is it beneficial to delay Social Security benefits?
—Delaying Social Security benefits can result in higher monthly payments and increased retirement income.
How can inflation affect retirement income?
—Inflation erodes the purchasing power of your money over time, meaning you'll need more income to maintain your standard of living.
What should I consider when planning for healthcare costs in retirement?
—Healthcare costs tend to rise with age, so it's important to factor in potential medical expenses and long-term care needs.
00:00Rick and Sue need help determining how much they can actually spend in retirement.
02:00We analyze their current expenses and assets to create a financial plan.
05:00Projected cash flows and withdrawal rates show their portfolio may not sustain their desired retirement lifestyle.
08:00We explore potential solutions, such as working longer or adjusting spending habits.
09:00Key insights include the importance of accurate expense estimation, delaying Social Security benefits, and considering inflation and healthcare costs.
