Retire comfortably by applying a few simple rules


To retire comfortably is for sure a desire for every single person. I mean, you have a long life of working behind you, so there should be no reason to suffer the remaining part of your life.

The truth, however, is often a different story. Many have to downgrade their lifestyle when realizing the amount of money they have to live on for this period of life.

As you approach retirement, you probably feel both excited and worried. Getting a correct balance between the freedom that comes with retirement and the cost of living without a monthly salary is often a tricky exercise.

To retire comfortably, it’s never too early to ask yourself how much money you will need on a daily, weekly, monthly, and yearly basis. Often we see retirement as something far away and treat the whole issue very lightly. Planning ahead to retire comfortably is more an exception than a rule among most people.

We all have dreams about what to do in life and many projects we leave until we retire. That’s fine, but to realize all these dreams will, in most cases, cost money. No matter where you are on your lifecycle, dedicate some time to write down what you really would like to do when the time to retire. Be as honest as you can. After all, it’s about you.

You can always come back and make adjustments to your plan. Still, when you have your retirement “roadmap,” there are four crucial variables you need to go through before it’s time to retire.


How Much Money Will You Spend?


Money to spend - retire comfortablyIf you made your wish list correctly, it wouldn’t be that complicated to calculate the cost. On top of that, you need to add all daily expenses, like food, living, car, etc. It’s an almost established rule to at least count on an amount corresponding to 80% of the income you had before retirement. Costs related to your work will no longer be there.

Further, it’s expected that your tax burden will be lower. So, if you had a yearly pre-retirement income of, let’s say, $60,000, you should, as retired, have at least $48,000, applying this 80% rule.

This calculation is only based on that you should maintain the same level of life as you had before retirement. But, there are two essential things to bring up here:

  1. Go back to your wish list, and I’m sure you have something that will cost you the money you didn’t have before retirement. A considerable portion of the population wants to travel more when retired. Even if you can get a good discount as a senior citizen, it’s definitely not for free.
  2. Medical care will for sure be more expensive, for two simple reasons: A) you’re getting older and for sure not healthier compared to when you were younger. B) Health insurance will most probably be more expensive over the years.

Thus, these “new” costs must be considered when calculating the amount of money you will spend as retired.


How Many Years Will You Live?


Years to liveYes, I know that the question is a bit bizarre. But the cruel truth is that one day we are all going to die.

The question is anyway challenging to answer, as so many factors will be involved in your longevity.

Take a look at existing statistics, which of course, vary from country to country.

However, 83 years for men and 85 for women seem to be common average figures.

Based on these figures, use 90 years to be on the “safe” side. By reasoning in these terms, you get a much clearer picture of how to save and spend.


Your Savings Should be a Reserve to Retire Comfortably


Reserve to Retire ComfortablyWe all have some sort of savings built up during the active years. It could be in stocks, bonds, or any other similar type of investment. They all have one thing in common: long-term savings.

You never know for sure how your investment will perform. If you have good advisors, you can probably do some kind of prediction, but nothing is certain. Suddenly, a financial crash can appear, like the one we were living 2008, and the value of your investment can fall like a stone in the water. The worst thing to do during such turbulent times is to sell in panic.

The conclusion is that your investment can’t be treated like a fund where you constantly use a specific amount of money to cover current expenses.

The best advice is to see your savings as a reserve, as a sort of rescue fund, if something urgent and unexpected should occur.


When and how to withdrawal from your savings.

If you should make a withdrawal from your savings, calculate the amount based on the average return of your investment and the number of years you calculate to live. Obviously, this will be a very rough estimated calculation, but it’s better than nothing.

Be conservative in your calculation. It’s always better to have some savings left than to live without money the last years on this planet.


Add New Income Streams and Retire Comfortably


Add New Income Streams and Retire ComfortablyAll advice above follows a very straightforward traditional formula. Some achieve results, and some don’t. One of the most important reasons why people fail to maintain a living standard they would like to have is simply lack of funds.

Let’s face it. Retirement funds that our parents could live on are today something different.

Most people, if not saving heavily, have to accept a downgraded lifestyle when retiring.

Fortunately, there is a way out of this rabbit hole if you take action. Thanks to the new digital world, we all can add new income streams and at the same time live the life we want as retired.

At the age of 61, eight years ago, I realized that the life I had to live as a retired wouldn’t be of the same standard I had by that time. In my case, I “woke up” late to this reality but started immediately to search for solutions. After quite a short time, after avoiding all false promises and scams out there, I came across what should be part of my life as retired.

Whether you are just getting started, have some existing online business experience, or are just ready to go to that next level, this “All-In-Package” will provide you with all the tools, training, support, and guidance you need to succeed online!

The system is much more than an online course. You’ll be given instant access to a proven marketing system that includes absolutely everything you will need to start your online business from scratch. This is the perfect opportunity to create that extra income stream you are looking for to retire comfortably and live your life entirely on your terms.


The four variables deciding your retirement style

In a nutshell, here are the four cornerstones building up your lifestyle as retired:

  1. How much money will you spend?
  2. How many years will you live?
  3. The way to use your savings
  4. Add new income streams

The only two variables you can actively decide upon are spending and income. How much you would like to spend depends on your desire. Almost everyone doing this exercise will notice that extra money will be needed. To use your savings is a way to go but will eventually jeopardize your available financial resources later in life.

To go for a new income stream is something that not only will bring money to your bank account. It will also allow you to monetize your interest and passion. It’s a new way of thinking in today’s digital environment. All on your terms!

Click here now and start exploring what you can do with your life from day one.


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Jan O. Nilsson – How Much Will You Need to Retire Comfortably?<==Go to the top of page

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