As discussed in prior posts, the key to successful retirement planning is to
- annually determine your Funded Status,
- monitor it from year to year and
- Adjust spending when your Funded Status falls outside pre-determined guardrails (suggested: 95%, 120%)
In her recent Go Banking Rates article, Hanna Horvath outlines six key steps to building an effective retirement plan and spending budget. We agree that the steps outlined by Ms. Horvath are important, but each of these steps (and much more) is anticipated in the simpler process we recommend.
Why does simplicity matter? You are much more likely to adopt and follow an approach if it is relatively easy to understand and to implement. Entering relevant data into the Input section of the Actuarial Financial Planner enables you to quickly develop your household Funded Status, and therefore, build a more effective retirement plan and spending budget.
