Planning for retirement is a natural process we look into as we continue to work and build our wealth. As you do so, your spending habits will likely fluctuate to accommodate your income. Your new reality, the closer you get to retirement, is understanding how those habits will need to change as you enter this new phase in your life.

The standard life expectancy has certainly changed throughout the years, and the average number is only expected to rise. This leads to questions regarding income planning for retirement, such as: how long should you save for? Simply put, we must look into where you are now, when you plan to retire, and how long your growth portfolio should be.

We’ve already discussed how investments within the stock market can and will be a critical factor as you approach retirement age. What is often overlooked is the risk that is established as you retire and begin withdrawing funds annually. You have no leverage over what the market does or does not do. However, there are steps you can take in order to minimize loss of investments so you can be assured that your funds will be there when you need them.

Let’s look into the pyramid of spending – in essence, break down your needs, wants, and legacy. This video looks into the different streams of income in which you incur and what you’re most likely putting that income toward. We’ll walk you through key considerations with the wants vs. needs scenario when looking to plan for a comfortable retirement.

Aside from pensions and social security, the bulk of your retirement income will come from investments. There are factors that should be considered when looking into current and future investments. You don’t need 100 percent of your wealth invested in the stock market, but understanding how key investments can work for you is critical when you’re looking for consistent accumulation of wealth over time.

Just as a diversified portfolio makes you a top job candidate, having a portfolio with multiple streams of income will allow for a more comfortable retirement. However, what it boils down to is having an accurate understanding of your sources of income so you know where your money is coming, leaving you with a more clear picture when planning your retirement.