Retirement planning is the process of determining retirement income goals and the actions needed to achieve those goals. This involves assessing one’s financial situation, including income, savings, investments, expenses, and desired lifestyle during retirement.
Key components of retirement planning include establishing a savings strategy, choosing appropriate investment vehicles, understanding Social Security benefits, and potentially planning for healthcare expenses. It often involves creating a budget to ensure that individuals can maintain their desired quality of life once they stop working.
Retirement planning can also encompass decisions about the age at which to retire, how to withdraw funds from retirement accounts, and strategies for tax efficiency in retirement. Overall, effective retirement planning aims to ensure financial security and sustain a stable income during 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…