Retirement planning is the process of determining retirement income goals and the actions necessary to achieve those goals. It involves assessing how much money will be needed during retirement to maintain a desired standard of living and developing a strategy to accumulate sufficient savings and investments. This can include factors such as analyzing current financial status, estimating future expenses, considering sources of income (such as Social Security, pensions, and personal savings), and choosing appropriate investment vehicles. Effective retirement planning also entails factoring in potential healthcare costs, inflation, and lifestyle changes in retirement. The ultimate aim is to ensure financial security and stability during an individual’s retirement years.
The Pursuit of Passive Income for Retirement As you approach retirement, building a reliable stream of passive income is crucial. While many consider rental properties for this purpose, the ongoing…