Don't underestimate expenses when creating your retirement plan

The thing about retirement is that it's filled with expenses

And they can be thought of as the minimum needed to sustain a standard of living, plus extra for nonrecurring needs and amounts to help meet dreams. What's more, those expenses are likely to change over time.

So, to make your retirement plan work in reality you first have to make it work on paper. You need to compare whether you'll have enough guaranteed income to cover your essential living expenses, including food, housing and health-insurance premiums, at the point of retirement and then compare what amount of income you'll need to cover your discretionary expenses, such as travel and the like (if those are indeed what you might consider discretionary expenses).


No doubt, as you go about the process of matching income to expenses, you might find yourself having to revise your discretionary expenses, especially if there aren't enough guaranteed sources of income to meet essential expenses.

Call me for a FREE evaluation of your financial situation,

Jesse Alvarado
(562)822-5565