Common Cents: Retirees must make (at least) five key financial decisions
When you’re working, you have a financial strategy that is largely based on one goal: saving money for a comfortable retirement. You’ll likely have to make many adjustments over several decades to ensure that you stay on track saving and investing.
But once you retire, a new goal arises — investing so you can remain retired. To help yourself achieve this goal, you will need to make a number of investment decisions.
Which of these decisions are most important? Here are five to consider:
How much will you spend each year? Before you can pursue an appropriate investment strategy, you’ll need to know about how much you'll spend each year. Estimate your costs for housing, food, travel, entertainment, insurance, gifts — everything. Keep in mind that your expenses will likely change annually, especially for items such as health care. Don't forget about inflation, which will likely cause your expenses to increase over the years.