Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
Have you ever wondered how much it costs to retire? Well the truth is it depends. There’s no one-size-fits-all formula. But these four questions can help you determine your magic number:
- How would you like to spend your retirement? It is important to start by mapping out your dream retirement. If you’re dreaming of vacations or a second home, your expenses may be higher than when you worked.
- Where would you like to spend your retirement? Housing is the biggest expense for most retirees. If you are thinking of relocating, look for cities with a low-cost of living.
- How much will health care cost? Health expenses increase steadily with age. It is the second biggest expense for people over 75. Medicare will help, but it does not cover everything.
- Do you plan to help your family financially? Plan ahead if you want to help your family achieve their own financial goals.
The bottom line; it pays to crunch the numbers now so you’ll be prepared later.