Understanding Your Retirement Income Needs

Before diving into specific investment strategies, it’s crucial to honestly assess your retirement income needs. Consider your desired lifestyle, healthcare costs (which can be substantial), travel plans, and any potential long-term care expenses. Creating a realistic budget that outlines your monthly and annual spending requirements is the first step towards smart investing. This budget will serve as your roadmap, guiding your investment decisions and helping you determine how much you need to withdraw annually from your investments. Remember to factor in inflation; your expenses will likely increase over time.

Diversification: Spreading Your Risk

Don’t put