Easy Seniors Life

You Don’t Really Know How Much You’re Spending

You should have a solid understanding of how much money you’re spending — but if you don’t, you’re not alone.

“Over half of the people I talk to who are gearing up for retirement don’t have a good understanding of how much they spend and where it goes,” said Daniel P. Johnson, a certified financial planner and founder at Forward Thinking Wealth Management in Akron, Ohio.

Retirees need to know this information because they’ll use their investments to fill the gap between what’s going out and what’s coming in through their pensions and Social Security plans.

“There is a huge difference if you are anticipating to need an additional $20,000 annually from your investments to fill the gap versus actually needing $50,000,” Johnson said.