22 Ways to Protect Your Retirement From a Possible Recession

Plan a Retirement Budget That Doesn’t Depend on Market Conditions

Goetz advises future retirees to “build a detailed and realistic budget in retirement” that will allow them to identify which income they will use for which expenses.

“Try to separate ‘wants’ — travel, entertainment, etc. — from ‘needs’ — housing expenses, food, taxes, insurance, etc.,” he said. “For the needs column, link expenses to guaranteed income sources, such as Social Security, pensions and income annuities. This approach can take a lot of pressure off of the income that is needed to be generated off of investment withdrawals as adjustments can be made if market conditions allow for it. It is much better to take that trip around the world off of an IRA withdrawal following a great market year.”

Having an accurate budget will also help you lower your expenses in retirement and by “doing so can also help you put aside more money for retirement because you won’t be spending money on unnecessary expenses,” said Chalmers Brown, CTO and co-founder of Due.

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