Читать книгу Personal Finance After 50 For Dummies - Eric Tyson - Страница 18
Determining whether you can afford to retire and how much you can safely spend per year
ОглавлениеTo assess whether you can afford to retire and how much you’ll be able to spend after you do retire, you have to do some analysis relating to your spending habits, temperament, and investing holdings. And, to be sure that you don’t run out of money or come close to running out of money, you also need to consider a wide range of scenarios for how your investments may perform in the years ahead. You can’t assume investments will return their historic averages each year. In fact, we’ve seen some stock indexes generate low returns or even negative returns over periods of a decade or more. See Part 2 for more information on each of these issues.
As with other aspects in life, differentiate between the things you can control and the things you can’t. The economy will go through recessions and the stock market will decline. Predicting their timing, depth, and duration is beyond anyone’s control. Although you can’t control these events, you can be prepared for them. Your plan should reflect that by having some flexibility and, if possible, a cushion. For example, you can control some of your spending and how much risk you take investing.