Retirement Budget Worksheet

Retirement Budget Worksheet

Retirement Planning Budget Worksheet

“The Insider’s Guide to Retirement and Insurance
Planning”

http://www.retirementandinsurance.com

I use this pre-retirement budget worksheet to help my
clients get a handle on what their current monthly cash outflows are like.
There are many online budget calculators, but I find that grabbing a pencil and
paper, along with bank statements helps to make the process accurate and
tangible. You are more than welcome to use this sheet to collect the
information and then input it into the software program of your choice.

If your household is like mine, we pay a bunch of our bills
online through our home checking account. Then we write checks or have some
recurring expenses charged to our credit card. First of all, get a grip on
which accounts you are using to pay your expenses, and then carefully track them
over a 12 month period. Many recurring expenses are the same every month, others
are erratic. For variable expenses (like gasoline or home electric) take an
annual total and divide by 12.

With these figures in place, you will see how much money you
are currently spending and how much you are likely to be spending in
retirement. Additionally, knowing your expenses will help you to calculate how
much life or disability insurance you should carry. At the very least, this
type of exercise can show you where you can economize and reallocate your spending.

How to use this worksheet:

1. Write
   in the Year at the top of the Worksheet
2. Collect
   the information from bank, charge card and online statements. Look back as
   far as one year to make sure that you get accurate amounts for each
   category. Note when payments are monthly quarterly, semiannual or annual;
3. Divide
   the total amount for each category by 12 to get an approximate monthly
   outflow;
4. Plug
   in an approximate annual increase. The average rate of inflation is 3% per
   year, but medical inflation can be as much as 10%; state and local taxes
   often see double-digit increases; home and auto insurance premiums can
   rise even faster;
5. Use
   Supplemental Worksheets for each Category that has a large number of
   individual items, such as “Subscriptions,” “Entertainment”
   or “Repairs and Maintenance;”
6. Total
   the “Annual Total” and “Divided by 12” columns;
7. Prepare
   a new worksheet each year leading up to retirement and one for the first
   few years after retirement.

© 2011 Prism Innovations, Inc. All Rights Reserved. http://www.prism-innovations.com

© 2011 Prism Innovations, Inc. All Rights Reserved. http://www.prism-innovations.com

Retirement Budget Worksheet
Category	Frequency	Annual Total	Divided by 12	Rate of Increase
Household Expenses
- Home equity loans
- Mortgage payment
- Homeowners insurance
- Taxes
- Gas
- Electric
- Water/sewer
- Telecom/cable
- Repairs & Maint’nance
- Gardening
Food
- Groceries
- Dining out
- Meals at work
Insurance Premiums
- Life insurance
- Disability insurance
- Long-term care
- Umbrella policy
- Medicare premiums
- Medigap premiums
Automobile
- Car insurance
- Maintenance
- Loan/lease
- Gasoline
Healthcare Costs
- Insurance premium
- Deductibles/copays
- Prescription drugs
- Dental
- Flexible spending acct.
Work Expenses
- Commute
- Memberships
- Subscriptions
Entertainment
- Hobbies
- Beauty/Barber
- Clothing
- Pets (food, vet, board)
- Vacation/travel
- Entertainment
- Gym membership
- Club membership
Family Responsibilities
- Alimony/Child Supp.
- Tuition/College Fund
- IRA/401k Contribut’ns
- Gifts to Children
- Charity
- Contribut’ns to Trusts
Debt Management
- Credit Cards
- Home Equity
TOTALS

© 2011 Prism Innovations, Inc. All Rights Reserved. http://www.prism-innovations.com