Sure, you’re saving for your retirement. You have a 401(k), other savings, and equity in your home, but how do you know if it’s enough? After you retire, you won’t be able to change your income. How much money will you have to live on? Will it cover insurance premiums, rent, or mortgage, and the rest of your monthly bills for the rest of your life? Will you be able to travel, dine out, or pay for large home or car repairs?
Sensible uses the Lifetime Balance Sheet to determine how much you’ll need to live well now and into retirement.
Here are links to articles on retirement and cash flow from the Sensible team.