Tip Content Provided By: Financial Finesse
You’ve worked your entire life to get to this point, but have you done enough to make your money last? It doesn’t matter how old you are, that is always the biggest worry people have when they transition from one phase of life to another. How can you figure it out?
Try our online calculator to help you figure out if your money will last as long as you do.
Here are some steps for proper planning:
• Figure out your monthly income from work, pension or any other benefits.
• Use an expense tracker or budgeting tool, such as Mint or Yodlee, to determine what your monthly bills are.
• Enter your current balance in your investments and determine what your risk tolerance is.
If you’re aggressive, 8% may be reasonable to use, 6 – 7% for a more moderate investor and 5% might make sense if you’re conservative. This will let you know how long your money would last if you average those returns or how much you can use each month in order to make your money last longer.