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Retirement success isn’t a game of luck — it’s about knowing your numbers before you take the leap. From your expected income and total savings to healthcare costs and rate of withdrawal, each number connects to your bigger financial picture.

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® break down the five must-know numbers before you retire, so you can step into your financial future with confidence.

1. Monthly and Annual Expenses

To plan for a secure retirement, it’s crucial to understand the full cost of your lifestyle. In addition to your day-to-day bills, you must also factor in discretionary spending on things like travel, gifts, and hobbies, especially as inflation drives prices up.

Budgeting can feel overwhelming, but just start with the basics: housing, insurance, and subscriptions. Then, analyze your spending patterns through credit or bank statements to build a clear, honest view of what life really costs.

2. Expected Income Sources

You also need to know what income is coming in the door. For many retirees, this includes sources like Social Security, pensions, rental income, or annuities. Once you understand both your income and expenses, you can identify any gap between them. That gap then becomes the baseline for what your investments need to generate to support your lifestyle.

3. Total Savings and Investment Balances

It’s important to know your retirement savings and investment account balances, including IRAs, 401(k)s, brokerage accounts, CDs, savings accounts, and checking accounts. Ensure your investments are aligned with your risk tolerance, your income plan, and inflation. If you have tax-deferred accounts, also consider how to withdraw funds in the most tax-efficient way.

4. Healthcare Costs

Estimate your future healthcare expenses — starting with Medicare premiums, out-of-pocket drug costs, and potential long-term care needs like home aides, assisted living, or memory care.

The average 65-year-old couple today should budget between $300,000 and $400,000 for lifetime healthcare. Determine whether you can put aside that much while still living the life you want. If not, can you afford insurance to help cover it?

5. Your Withdrawal Rate

When calculating how much you can safely withdraw from your accounts each year, it’s essential to factor in taxes, market performance, inflation, and longevity. The order of withdrawals matters too, as different account types are taxed differently. By letting your income plan guide your investment strategy, you can help minimize your lifetime tax burden.

Interested in building a simple, actionable plan for your retirement and investment success? Get your free Money Map book by texting “MAP” to 800-757-0436.