How does inflation affect your retirement plan?
When planning for retirement, here are some considerations.
- Many do love to travel during retirement, but as we age, we do slow down the travel. So, travel expenses go down as people age.
- It’s important to have cash liquidity buckets so that you have money for emergency needs.
- Short-term needs are any monies you will need within a 3-year timeframe.
Look at core and essential expenses, like electricity.
Look at variable expenses, like coffee.
Match your core essential expenses with predictable income.
Social security is the foundation of retirement.
- One can take social security as early as 62.
- If monies are still being earned at that time, it may not make sense to take it too early.
- Everyone can go to SSA.gov to set up an account and see the estimated social security benefits they will receive.
Consider tax-deferred and tax-free investing. Also, dollar cost averaging, which is making consistent and repeatable contributions.
Consistency is key.