For an individual to be financially secure during retirement, it requires coming up with a feasible financial plan. But what does retirement financial planning in Houston entail and how does one go about it? The following steps must be carried out before the planning and execution of a retirement financial plan.
Analysis of Expenses
This is the first and most important step in coming up with a feasible retirement plan. When asked, many people believe that they don’t spend a lot of money on a monthly basis. They usually only calculate the money spent on gas and groceries. An individual’s living expenses must include the following:
• Property and Income tax.
• Vacations and entertainment.
• Car and insurance payments.
• Money spent on tithing and on charity.
• Money spent on the kids, etc.
These are just a few of the things which make up an individual’s living expenses. Write them all out and list them in their order of importance.
Income Analysis
This is where an individual lists out all sources of income. Write down income from all sources including social security, rental properties, investments, royalty income, pensions, etc.
Subtract Income from expenses
Take the total income and subtract it from the total expenses. The result of this simple arithmetic gives one an idea of what the years of retirement are going to look like. If there is money still left over after the subtraction, and barring any sudden medical condition, natural disaster or economic upheaval, then the years of retirement is likely to be comfortable. But if not, and especially in cases where there is a huge deficit, then it is essential that the individual begins immediately to look for alternative sources of income or drastically reduce expenses. Such people may also find that they still have a lot of debt to pay off.
For many individuals, they’ll find themselves in the latter category. It is essential that they contact MyersYounger LTC in order to get sound financial advice and help on how to plan for their retirement. Even for those with healthy finances, it is also vital that they get expert advice. Please visit the website to get more information on retirement financial planning in Houston.
