Estimates And Retirement Planning

You need to gather tons of information before you retire, some of which you’ll arrive at due to guesswork. Why guesswork? It’s impossible to predict what’s going to happen to the economy, your earnings, market conditions, and so on with a startling degree of accuracy. However, planning well for your retirement is still possible – it’s just that much of the data you’ll be working from will be influenced by unknown factors. Here are just a few “guesstimates” that will play a huge part in your retirement planning:

Estimates And Retirement Planning

When it comes to investment earnings, you’re probably going to arrive at a ballpark figure. For example, numerous investment analysts may have identified that stocks have roughly averaged at 11% returns annually after a recession. Even if this is true, what happened in the past isn’t always a foretelling of what will occur in the future, because there’s a world of difference between average and linear return growth. Stocks, overall, may have shot up by 20% one year and dropped 10% more than that the following year, and then take half a decade to get back on track.

Estimates And Retirement Planning

Your tax bracket is another thing that’ll be hard to predict. What’s for sure is that you’ll be paying taxes no matter what. These brackets also influence how much money you have in retirement. The expected tax bracket system for the coming year pegs that taxes for long-term capital gains are going to go up. Other changes are also going to affect your current investments and retirement income today and in the long run.

Estimates And Retirement Planning

Inflation’s another guesstimate you’ll be using to formulate your retirement plans. As with taxes, the only sure thing you can say is that they’ll be there in any case. What many retirees and near-retirees wish is that their overall income will exceed, if not keep up with, inflation.

Estimates And Retirement Planning

Puritan Financial Group specializes in giving seniors alternative investments that can help them live comfortably in retirement, and buffer their funds against the effects of taxes, inflation, and other factors. For more information about how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com

More School Business Estimator Articles

Buyfave.com