Will I Have Enough Money to Retire?

In my previous post Financial Vulnerabilities I asked you important questions to help you understand the facts you gathered regarding your spouse. Here in part three I continue to help you analyze and understand the facts.

Understand the Facts, Part 3

How will your children be supported if something happens to you and your husband? Live insurance on your life or if you are married, on your life and your husband’s life, owned by a trust for the benefit of your children, is the best way to cover this need. Since the children will not need the money forever, just until they reach their early twenties, a much smaller investment amount is needed. In order to provide $5,000 a month for 15 years, using the same assumptions as above, you would need an investment of $698,690.

What happens to those child support payments if your divorced husband dies? A good divorce decree requires enough life insurance on your former husband to cover not only the alimony payments, but also the child support payments, should he die before his obligation is over. You should be the owner and beneficiary of this policy.

How can you make sure you will have enough to retire?

The best advice is: by starting EARLY! Let’s say you need the same $10,000 per month, adjusted for inflation, to age 95, we have been talking about. Let’s say you have zero saved for retirement and you are 40 years old and want to retire at 65. How much would you have to save for retirement each month between now and age 65? $5,619. Now let’s say you are 50. You need to save $10,685 per month to be able to retire! So, start early and be consistent.

Take the time now to start saving for retirement. If you have any challenges or need additional information please feel free to comment below.

Check back next week for my post, Educate Yourself.  This will help you further analyze your financial situation.


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