Planning for retirement can never begin too soon but whether you are 25 or 65, basic principles apply and should guide your decision-making.
The goal for investors should be this: To generate enough consistent and sustainable retirement income to cover basic living expenses after paying any federal, state or local taxes and allowing for any gifting for estate or charitable purposes.
How do you do that? Start by making sure you understand the language of investment and the meaning of retirement.
For our purposes, “retirement” is the start of the period when the money you earn from a job (household salaries, wages and bonuses, etc.) do not cover basic living expenses. One or both spouses might be working full- or part-time, but for most investors, the way you manage your finances changes when a gap between earned income and expenses first appears.
So what’s “retirement income?” More