• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Gap Analysis

As we begin to quantify your retirement, we have a number of tools we can use for goal setting and for monitoring. The best place to start for those groups that have not yet retired is the gap analysis. This type of analysis defines the gap between your goal and your current state. Let's say you tell me you need to have $100,000 a year in income when you retire, which you're planning on doing in 20 years. You expect to live at least 25 years after you retire. Once we agree on an assumed interest rate to guide our growth rate and an agreeable rate of inflation to compensate for the future cost of goods and services, we can solve for the amount of money required to meet our goal. We can solve for the amount you would need to invest today, or if you like, we can solve for the amount you would need to save on an annual basis for the next 25 years.

Savings Tip

Take advantage of discounts. Another area where you can save is in using discounts. Discounts mean you pay less, and the difference can help to fund your retirement. I was recently at a grocery store and was about to check out without entering my frequent shopper ID. I did so at the last minute and ended up saving over $4 on that visit alone. These may seem like insignificant amounts, but they represent a mindset that you need to start to incorporate into your life if there is any doubt about your ability to meet your goals.



PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint