Ways To Simplify Your Retirement Plan

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Though planning for retirement can be a rather complex process that certainly requires time and effort, the truth is that it doesn't always have to be as complicated as you think. Once you've answered all of the questions on this retirement checklist, you can use these five steps to simplify the rest of your planning experience:

Step 1: Determine your net worth.
To determine your net worth, take a close look at the value of your combined assets; that includes your home, investments, pensions where applicable and current savings. Additionally, consider what you are currently liable for (your mortgage, for example). After you have all of these numbers written down, subtract what you owe from what you own to discover your net worth.

Step 2: Determine your income needs during retirement.
When all is said and done, you should expect to need at least 60% of what you earned during your last year in the working world for each year that you are retired. But, since it's always better to expect the unexpected, your best bet would be to calculate your needs at a percentage higher than that. To figure out how much income you'll need, think about factors such as the cost of living, medical needs and recreation. Then, be sure to take a look at where your income will be coming from; for example, pensions, social security and investments.

Step 3: Take inflation into account.
As is stated in Lee and Saralee Rosenberg's book, 50 Fabulous Places to Retire in America, "inflation is a retirement buster." All too often people forget to think about inflation, but failing to do so can hurt your retirement efforts. As you start to focus on your projected income and where that money will go, be sure to consider how your money will change when inflation is applied.

Step 4: Don't forget to consider taxes.
Taxes - a topic we wish we could avoid, but we can't. Between income taxes, capital gains taxes, estate taxes and state taxes, approximately 90% of your dollar could wind up going to Uncle Sam! When you begin to look into things like possibly selling a home, relocating and where your money will go after you pass, it is absolutely critical that you spend some time taking taxes into account.

Step 5: Prepare for the eventual cost of health care.
Last but not least, you must anticipate how health care needs are going to impact your wallet. Though there are programs to help with the cost, you are inevitably going to have to bear the responsibility of covering most of it, which is why it is so important to prepare well before that time comes. To help with this topic, consider things like long-term care insurance.

And that's it! To avoid getting all caught up in the planning process, simply go down the list provided above - it's a sure way to cover all your bases!

For more retirement planning tips, be sure to check out 50 Fabulous Places to Retire in America by Lee and Saralee Rosenberg. Furthermore, for retirement planning services, please contact American Investment Planners LLC by calling (516) 932-5130 today.