Preparing to Retire – How much is enough? RETIREMENT PLANNING often includes a detailed analysis, which often includes spending, inflation, and how you will manage your investments or retirement nest egg. Proper planning you can also address fears and concerns such as health care costs, outliving your money and the best time to start taking social security.

One thing we see with clients is even with the most sophisticated analysis or plan FLEXIBILITY, having the ability to adjust your expenses if things don’t quite go the way you plan, could be the key to having confidence in your retirement. Knowing what this flexibility looks like could even be the difference between success and failure. So that if (or when) the unexpected happens, good or bad, you know where or how you might adjust.

Consider breaking your projected retirement expenses into 3 buckets: Needs, Wants and Wishes

• Needs – these are the basic living expenses that you will need. Without covering these expenses life would become miserable.

• Wants - we all want a comfortable life and that includes some discretionary spending. That discretionary spending over your basic living expenses would go here.

• Wishes – what if you end up with excess over your needs and wants - what would you do with that excess? These become wishes which might include extra travel, charitable giving or helping other family members enjoy a special occasion.

Scripture reminds us it is wise to plan and we should plan for the unexpected (Proverbs 6:6-8; Luke 14:28). The financial principles in Proverbs will help you not only have financial stability in retirement, but will often lead us to have excess to show God’s love by helping those in need. As Christians these principals can provide us with added confidence in doing our part as we plan and prepare for the future.

These principles often need to be applied uniquely to our circumstances and our financial lives. Let us know if we can help.