Your Dashboard for Retirement Planning and Beyond!

Hey there, future retiree! As you approach the golden years (and much much earlier), it’s so important to put on your financial detective hat and dive into the world of numbers to ensure a smooth sail into retirement. Let’s make this journey as friendly as possible by exploring 8 financial wellness metrics that will guide you on this exciting adventure.

  1. Income Replacement Ratio (IRR): Imagine it as your retirement income superhero! The IRR calculates the percentage of your pre-retirement income that your retirement income will cover. Aim for that sweet spot between 70-80%. So, if you’re currently rocking a $100,000 salary, shoot for a retirement income between $70,000 to $80,000.
  2. Net Worth: Think of net worth as your financial selfie. It’s the total of all your assets (savings, properties, investments) minus any debts. This big-picture view tells you how financially fit you are and whether you can comfortably kick back in retirement.
  3. Liquidity Ratio: Ready for a short-term expense pop quiz? The liquidity ratio measures your ability to handle unexpected expenses without selling off the family heirlooms. Divide your liquid assets (cash, savings, short-term investments) by current liabilities. A ratio of 1 or more means you’re in the clear.
  4. Savings Rate: Your savings rate is like planting seeds for a lush retirement garden. Aim to squirrel away 10-15% of your income for retirement. But keep in mind, this might change based on your situation, market vibes, risk tolerance, and how soon you plan to swap the daily grind for leisurely strolls.
  5. Debt-to-Income Ratio (DTI): Let’s talk debts! The DTI compares your monthly debt payments to your income. A lower DTI means you’re balancing debts like a financial acrobat. Lenders love this ratio, and so should you.
  6. Medical Expense Forecast: Health is wealth, especially in retirement. Predict your medical costs by considering your health status, potential needs, family history, and those pesky long-term care expenses.
  7. Retirement Savings Lifespan: Ever wondered how long your savings will party with you? Crunch the numbers by looking at your expected annual withdrawal rate, total savings, and expected lifespan. It’s like predicting the lifespan of a financial bonfire.
  8. Investment Diversification: Picture this as the superhero team-up of your retirement savings. Spread your assets across different investments to reduce risk. A diversified portfolio might just be your shield during market roller coasters.

Good news: All of this is covered in our Financial Plan. Get yours now and begin to sail into 2024 and beyond! Set your consultation today.

Remember, everyone’s retirement journey is as unique as a fingerprint. These metrics are your trusty companions, providing a starting point for your adventure. And hey, when things get tricky, don’t hesitate to call in the financial professionals – they’re like the wizards of retirement planning! Happy retirement prepping! 🌟

Book a free consultation today to learn more.


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