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Reality often looks different than what you imagine in your mind sometimes dramatically so.
And just as importantly, check that it will cost what you expect.
That starts with answering questions around who, what and where, Epperson said.
Where do you plan to live in retirement?
Does it involve much travel?
Do you plan to split your time between locations?
Can you age in place there, or will you have to transition at some point?
What do you plan to do to stay fulfilled, engaged and entertained in retirement?
How might that shift over time, as your health and fitness change?
What does a typical day look like?
Finally, who do you plan to live this retirement lifestyle with?
Do they share your vision?
Mimic your future living arrangements as much as possible.
Do theday-to-day hobbies and activitiesyou plan to do in retirement.
Eat the local food.
Shop for groceries at the local markets.
Try out a few neighborhood restaurants and cafes.
Visit the local library.
If you love the lifestyle but your spouse hates it, your vision needs to keep evolving.
What does housing cost?
How would your grocery bill compare to your current city?
Do local restaurants and cafes cost more or less?
How much do your planned hobbies and entertainment cost?
Project your expenses for retirement based on firsthand experiences of living there.
Use the projection to create your retirement budget.
Next, subtract your projected expenses, and create categories of spending or saving for any money left over.
The idea is to account for every penny of income.
Test driving your budget now could eliminate unpleasant surprises later, when theyll be more difficult to overcome.
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