From there, you can break it down into monthly income. This is a rough ballpark number for your annual income. Total up your projected income based on all of these revenue streams, then divide that number by how many years you plan to live in retirement. Annuities are an insurance product that many people use to fund their retirement years. ![]() Real estate can be a steady source of passive income-just make sure you don’t carry a single penny of mortgage debt into retirement!.If you’ve got money put away in a brokerage account, you can start to withdraw money during retirement. Taxable investments are a way to save for retirement, especially if you’re a high-income earner.Part-time earnings: Do you plan to still work here and there in retirement? Add up how much you think you’ll make each year.Pensions are a thing of the past for many Americans, but if you’re receiving a pension from your employer, get the details from HR.Social Security benefits are the icing on the cake of your retirement fund-not the cake itself! We don’t want to you to count on Uncle Sam to take care of you in retirement, but you can calculate your Social Security benefits to know how much to expect.Tax-advantaged retirement accounts, like a 401(k), 403(b) or Roth IRA.Sit down with an investment professional and make a list of all of your income streams, like the following: Hopefully, you’ve been investing consistently for years to build wealth in a diverse set of “buckets” that will now become your paycheck! We like to think of your income streams as buckets of money that you’ll pull from in retirement. Here are four steps to creating your retirement budget. We also want you to be realistic and have a plan to make those dreams a reality! That way, you’ll know what adjustments to make. ![]() Create a budget and try it out for a while. Two to three years before you retire, we suggest you take an honest look at what you’ll actually need to fund your lifestyle. The key to making sure you have enough saved is to create a retirement budget-and stick to it! Despite what most people think, a budget isn’t a killjoy. We’ve talked to dozens of people who didn’t plan well, retired, and later had to unretire because they ran out of money. Congratulations! Now, the goal is to remain retired. You worked hard, planned ahead, and set aside money over the years to be able to retire.
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