pre-retirement; retirement planning

7 Steps to Estimating Your In-Retirement Cash Flow Needs

 Like many of my posts I’m sharing links to excellent advice from other writers.

Ultimately, it may be difficult to forecast your actual income-replacement needs with a great deal of precision. Even as you attempt to anticipate every in-retirement expense to the penny, unforeseen expenditures such as healthcare costs can buffet spending around on a year-to-year basis. But because anticipated income needs are such a key ingredient in the retirement-income puzzle, it’s helpful to come up with as realistic a figure as possible while also being realistic that your own expenditures are apt to vary over time.”

The 7 steps are: 

Step 1: Find a Realistic Baseline

Step 2: Subtract Your Savings Rate

Step 3: Subtract Any Tax Reductions

Step 4: Subtract Any Anticipated Housing-Cost Changes

Step 5: Factor in Lifestyle Changes

Step 6: Add Higher Healthcare Costs

Step 7: Add Inflation and a Healthy Fudge Factor

For all the details: https://www.morningstar.com/articles/839519/7-steps-to-estimating-your-in-retirement-cash-flow-needs






Source: Financial Planning for Women