Take Inventory of Your Assets
Take Inventory of Your Assets
Take Inventory of Your AssetsYou’ll need to get a firm handle on your future cash flow in retirement.Identify all your sources of retirement income, including money from retirement accounts (such as 401(k)s and IRAs), pensions, Social Security and other income.You’ll need to start taking required minimum distributions from your retirement accounts by age 73, so don’t forget to include that in your plan.If you don’t already have a budget or track your spending, pull out a few months of bank and credit card statements to get a handle on where the money is going.You’ll want to review information from all your retirement savings, too.It’s important to consider how your financial situation and living expenses will change in retirement. You won’t spend as much money commuting to work, for example, but your health care costs will increase as you age.Don’t forget about other financial obligations, too, like caring for parents or supporting children.Finally, try to eliminate as much debt as possible so it doesn’t eat up your retirement savings later and derail your financial plan.