5 Step Retirement Plan for Nurses
Working as a nurse allows you a steady income of monthly paychecks that may have included differential and overtime pay.In preparation for retirement you must begin thinking about the income needed to provide the lifestyle you desire.This income must be built solely upon fiduciary decisions that create your lifetime savings.You hope your planning will provide enough money saved through various sources, one of which should include your employer-sponsored pension.
There are many unpredictable factors to consider as your journey toward retirement begins.Other considerations unfold as you ponder how long your income can sustain your retirement.These considerations include the impact of inflation on the cost of living, how interest rates and market returns affect your assets, health related expenses and much more.
CreativeNurse developed a 5-step process to help you better understand your current financial status, how to attain then manage your cash flow to enjoy your lifestyle in retirement.
1. To start, get an understanding of your cash flow.
Ask yourself questions about how much money you need to live the retirement lifestyle you dream of. Finding the answers your questions begins the thought process of creating new sources to generate income. It is now possible to start on the path to your goal(s) whether or not you are close to or already beginning retirement.
2.Create an outline while reviewing your guaranteed income sources; include how much cash these sources will provide.
These sources may be pensions, social security benefits or other sources such as inheritances. It is essential that your guaranteed income covers fixed expenses such as a mortgage payment, insurance payments and basic lifestyle expenses.
3. Add other (variable) income, expenses, taxes and debt separately to your outline – include potential increases anticipated in living costs.
This key step gives you an idea of the monetary amount you can invest for future spending. This accounting exercise illustrates why your income must keep pace with the cost of living so you can enjoy your retirement years.
4.Now you’ve reached the step where asset allocation and analysis of your current portfolio is assessed.
At this point your guaranteed sources of cash flow are outlined, you know exactly what your assets are, and how much you are able to withdraw annually without running out of money.
5.This last step addresses unknown factors that can impact your lifestyle and assets.
Unexpected life events such as: stock market corrections, disability and long term care, longevity and elder care, and health expense increases are discussed.
Written by CreativeNurse Team 2016-16666 Exp.1/18