Posted on July 9, 2014 | Financial Planning
Retirement planning requires a clear-eyed analysis of future needs and income. Yet many individuals view retirement through rose-colored glasses.
Here are some of the most common myths and how you can bring reality into focus.
Myth #1: You will not need as much money during retirement as you do now.
The general rule of thumb says that you will need approximately 70% of your pre-retirement income in order to maintain a lifestyle similar to that which you currently have. This may be true if you live your current lifestyle. However, when you retire, you will have more free time for travel, leisure activities, hobbies, and other things you might like to do during your retirement years.