Framing Your Picture of Retirement

When calculating how much money you will need for retirement, there are a few key factors to consider: your non-discretionary spending, discretionary spending, inflation, and your investment time horizon.

🔷Non-discretionary spending includes things like housing costs, food costs, and transportation costs. These are expenses that you will likely have to continue paying whether you're retired or not.

🔷Discretionary spending includes things like entertainment expenses, clothing expenses, and travel expenses. These are expenses that you may be able to reduce or eliminate once you retire, depending on your lifestyle.

🔷Inflation is the rate at which prices for goods and services increase over time. If you don't account for inflation in your calculation, your retirement savings may not last as long as you expect.

🔷Your investment time horizon refers to your life expectancy, the life expectancy of a younger spouse, or longer if you plan to leave a legacy.

All of these factors are important when planning for retirement and should be considered when estimating how much money you will need.

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_{This content is developed from sources believed to be providing accurate information and provided by My NP Advisor. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}