Retirement Income Planning
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Following these guidelines could help you maintain a steady flow of income in your nonworking years.
Retirement can be an exciting next chapter in your life, offering new beginnings and opportunities. Coming up with a retirement income plan can help you financially prepare for the long and fulfilling retirement you want. Here are some considerations when it comes to retirement income planning.
Assess your needs and wants
Start by creating a personalized estimate to help determine how much income you will need in retirement. That estimate should be based on:
Fixed expenses. These are basic, ongoing expenses including food, mortgage or rent payments, transportation, insurance premiums, health care costs, taxes, and other nondiscretionary living expenses.
Discretionary expenses. These include entertainment, travel, recreation, charitable giving, and luxury items. Because these are deemed nonessential, you can potentially lower or postpone them during periods of market volatility or if your financial situation changes.
Identify your sources of income.
- Outline your anticipated sources of income with estimated dollar amounts. The income you receive during retirement can come from a variety of sources, including:
- Retirement savings, including 401(k), 403(b), and 457 plans
- Nonretirement savings, including brokerage accounts and savings accounts
- Social Security
- Traditional pension plans (defined benefit plans)
- Annuities
- Full- or part-time employment
- Real estate or other income-generating sources
- Inheritance
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds, or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
