Are Your Money Stream Calculations Prepared for Retirement?

15% ROI, 5% down loans!”,”body”:”3.99% rate, 5% down! Access the BEST deals in the US at below market prices! Txt REI to 33777 “,”linkURL”:”https://landing.renttoretirement.com/og-turnkey-rental?hsCtaTracking=f847ff5e-b836-4174-9e8c-7a6847f5a3e6%7C64f0df50-1672-4036-be7b-340131b43ea4″,”linkTitle”:”Contact Us Today!”,”id”:”65a6b25c5d4b6″,”impressionCount”:”1476157″,”dailyImpressionCount”:”834″,”impressionLimit”:”1500000″,”dailyImpressionLimit”:”8476″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/720×90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/320×50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”BiggerPockets Financial Services Finder”,”description”:”2″,”imageURL”:null,”imageAlt”:null,”title”:”2″,”body”:”2″,”linkURL”:”https://www.biggerpockets.com/business/finder/tax-and-financial-services”,”linkTitle”:”Find a Financial Planner”,”id”:”664e3267b2cc1″,”impressionCount”:”99731″,”dailyImpressionCount”:”49″,”impressionLimit”:”1000000000″,”dailyImpressionLimit”:”10000000″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/FinServ-Blog-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/FinServ-Blog-300×250-1-e1716400562184.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/FinServ-Blog-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/FinServ-Blog-320×50-1-e1716400684636.png”,”r720x90Alt”:”BiggerPockets financial planner finder”,”r300x250Alt”:”BiggerPockets financial planner finder”,”r300x600Alt”:”BiggerPockets financial planner finder”,”r320x50Alt”:”BiggerPockets financial planner finder”},{“sponsor”:”CV3 Financial”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/Logo-512×512-1.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://cv3financial.com/financing-biggerpockets/?utm_source=biggerpockets&utm_medium=website&utm_campaign=august&utm_term=bridge&utm_content=banner”,”linkTitle”:””,”id”:”66a7f395244ed”,”impressionCount”:”470903″,”dailyImpressionCount”:”630″,”impressionLimit”:”636364″,”dailyImpressionLimit”:”4187″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”2″,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-Logo.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://hubs.ly/Q02LzKH60″,”linkTitle”:””,”id”:”66c3686d52445″,”impressionCount”:”488444″,”dailyImpressionCount”:”486″,”impressionLimit”:”500000″,”dailyImpressionLimit”:”6173″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Equity Trust”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/1631355119223.jpeg”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://www.trustetc.com/lp/bigger-pockets/?utm_source=bigger_pockets&utm_medium=blog&utm_term=banner_ad”,”linkTitle”:””,”id”:”678fe1309ec14″,”impressionCount”:”126368″,”dailyImpressionCount”:”460″,”impressionLimit”:”244525″,”dailyImpressionLimit”:”758″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Maximize_RE_Investing_Ad_720x90.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Maximize_RE_Investing_Ad_300x250.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Maximize_RE_Investing_Ad_300x600.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Maximize_RE_Investing_Ad_320x50.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Equity Trust”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/1631355119223.jpeg”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://try.trustetc.com/bigger-pockets/?utm_source=bigger_pockets&utm_medium=blog&utm_campaign=awareness_education&utm_term=ad”,”linkTitle”:””,”id”:”67acbacfbcbc8″,”impressionCount”:”116073″,”dailyImpressionCount”:”401″,”impressionLimit”:”244525″,”dailyImpressionLimit”:”758″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/ET_15-Min_RE_Guide_720x90.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/ET_15-Min_RE_Guide_300x250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/ET_15-Min_RE_Guide_300x600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/ET_15-Min_RE_Guide_320x50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Equity 1031 Exchange”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/1631355119223.jpeg”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://getequity1031.com/biggerpockets?utm_source=bigger_pockets&utm_medium=blog&utm_term=banner_ad”,”linkTitle”:””,”id”:”678fe130b4cbb”,”impressionCount”:”184654″,”dailyImpressionCount”:”466″,”impressionLimit”:”500000″,”dailyImpressionLimit”:”1446″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/E1031_Avoid_Taxes_Ad_720x90.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/E1031_Avoid_Taxes_Ad_300x250.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/E1031_Avoid_Taxes_Ad_300x600.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/E1031_Avoid_Taxes_Ad_320x50.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”RESimpli”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Color-Icon-512×512-01.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://resimpli.com/biggerpockets?utm_source=bigger_pockets&utm_medium=blog_banner_ad&utm_campaign=biggerpockets_blog”,”linkTitle”:””,”id”:”679d0047690e1″,”impressionCount”:”243436″,”dailyImpressionCount”:”470″,”impressionLimit”:”600000″,”dailyImpressionLimit”:”3315″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/06/720×90.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/06/300×250.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/06/300×600.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/06/320×50.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Rent to Retirement”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Logo_whtborder_SMALL-2.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://landing.renttoretirement.com/og-turnkey-rental?hsCtaTracking=f847ff5e-b836-4174-9e8c-7a6847f5a3e6%7C64f0df50-1672-4036-be7b-340131b43ea4″,”linkTitle”:””,”id”:”67a136fe75208″,”impressionCount”:”309391″,”dailyImpressionCount”:”499″,”impressionLimit”:”3000000″,”dailyImpressionLimit”:”9010″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720×90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300×250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300×600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320×50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Fundrise”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/512×512.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://fundrise.com/campaigns/fund/flagship?utm_medium=podcast&utm_source=biggerpockets&utm_campaign=podcast-biggerpockets-2024&utm_content=REbanners”,”linkTitle”:””,”id”:”67a66e2135a2d”,”impressionCount”:”225062″,”dailyImpressionCount”:”407″,”impressionLimit”:”1000000″,”dailyImpressionLimit”:”3049″,”r720x90″:null,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Fundrise-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Fundrise-300×600-1.png”,”r320x50″:null,”r720x90Alt”:null,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:null},{“sponsor”:”Kiavi”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Kiavi-Logo-Square.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://app.kiavi.com/m/getRate/index?utm_source=Biggerpockets&utm_medium=Content%20Partner&utm_campaign=Biggerpockets_CP_blog-forum-display-ads_Direct_Lead&utm_content=202502_PR_Display-Ad_Mix_mflow&m_mdm=Content%20Partner&m_src=Biggerpockets&m_cpn=Biggerpockets_CP_blog-forum-display-ads_Direct_Lead&m_prd=Direct&m_ct=html&m_t=Display-Ad&m_cta=see-rate”,”linkTitle”:””,”id”:”67aa5b42a27c3″,”impressionCount”:”130148″,”dailyImpressionCount”:”386″,”impressionLimit”:”250000″,”dailyImpressionLimit”:”770″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/05/ARV-Tool-Ad-Resizing-v2_720x90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/05/ARV-Tool-Banner-Ad-Resizing-v2_300x250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/05/ARV-ToolAd-Resizing-v2_300x600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/05/Instant-Terms-Banner-Ad-Resizing-v2_320x50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Equity Trust”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/1631355119223.jpeg”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:false,”linkTitle”:””,”id”:”67acbad06898b”,”impressionCount”:”2″,”dailyImpressionCount”:0,”impressionLimit”:”2″,”dailyImpressionLimit”:”2″,”r720x90″:null,”r300x250″:null,”r300x600″:null,”r320x50″:null,”r720x90Alt”:null,”r300x250Alt”:null,”r300x600Alt”:null,”r320x50Alt”:null},{“sponsor”:”Realbricks”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/ga8i9pqnzwmwkjxsmpiu.webp”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:” https://realbricks.com?utm_campaign=9029706-BiggerPockets&utm_source=blog&utm_medium=banner_ad”,”linkTitle”:””,”id”:”67c5c41926c9f”,”impressionCount”:”268315″,”dailyImpressionCount”:”493″,”impressionLimit”:”500000″,”dailyImpressionLimit”:”5556″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-720×90-2.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Baselane”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/04/Baselane-logo.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://www.baselane.com/lp/bigger-pockets/?utm_source=bigger_pockets&utm_campaign=bigger_pockets&utm_medium=displayads”,”linkTitle”:””,”id”:”67f6a44c0ca45″,”impressionCount”:”70664″,”dailyImpressionCount”:”387″,”impressionLimit”:”200000″,”dailyImpressionLimit”:”598″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/04/720×90.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/04/300×250-2.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/04/300×600-2.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/04/320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””}])”>

Retirement planning typically looks like a checkbox train for high-income professionals and enterprise house owners. Work arduous, save diligently, make investments right here and there—carried out, proper? However let me ask you this: Are your money move calculations able to assist the life you envision after retirement?

It’s not nearly hitting a magic quantity in your accounts; it’s about making certain your cash can maintain tempo along with your desires. The hole between what you assume you’ll want and what you’ll truly want is usually wider than anticipated.

However right here’s the excellent news: With the precise technique, you may shut that hole, safe your future, and even construct a legacy that lasts for generations. Let’s dive in.

What Is Money Stream Planning for Retirement?

Money move planning is about one factor: making certain your revenue can cowl your bills—in the present day, tomorrow, and for many years to return. Nevertheless it’s not nearly overlaying fundamentals like housing and groceries. True money move planning must also account for the approach to life you need, whether or not that features journey, hobbies, or just having fun with peace of thoughts.

Right here’s what you might want to think about:

Fastened prices: Constant bills, like housing, insurance coverage, and healthcare.
Variable prices: Life-style bills, like eating out, journey, or that dream automobile you’ve all the time needed.
Inflation: The silent thief of wealth that makes all the things dearer over time.

For instance, in case your annual bills in the present day are $75,000, in 20 years, you’ll want about $135,000 yearly to take care of the identical life-style with a mean inflation fee of three%. This is a actuality many retirees (or FIRE buyers) underestimate, however accounting for it might allow you to keep away from monetary stress later.

Why Money Stream Calculations Matter

For those who’re like many excessive achievers, you possible have two main retirement targets:

Stay the retirement you’ve all the time dreamed of, with out monetary stress.
Construct a monetary legacy for your loved ones.

However with out correct money move planning, you threat falling into one in all two traps:

Overconfidence: Assuming your financial savings might be sufficient, solely to face shortfalls.
Paralysis: Feeling so overwhelmed by the numbers that you just delay motion, lowering the time in your investments to develop.

Take Sarah, a small enterprise proprietor with a thriving profession. She had financial savings and a few investments, however she struggled to see how they may exchange her lively revenue. By way of a strategic strategy, together with passive investments in actual property and actual property debt funds, she constructed a portfolio that now generates over $118,000 yearly in passive revenue—sufficient to maintain her supreme retirement and create a long-lasting legacy for her youngsters.

Easy methods to Confidently Calculate Your Retirement Wants

Let’s break it down into three easy steps.

Step 1: Outline your life-style prices

What does your supreme retirement seem like? Perhaps it consists of worldwide journey, volunteering, or just having extra time for household. Begin by breaking your bills into two classes:

Fastened prices: Mortgage, utilities, healthcare premiums
Variable prices: Holidays, hobbies, or serving to your family members

Be trustworthy about what you’ll want—this isn’t the time to underestimate.

Step 2: Account for inflation

Inflation can erode your buying energy quicker than you would possibly anticipate. Utilizing an inflation calculator (like SmartAsset’s Inflation Calculator) might help you perceive how your bills will develop over time.

Instance:

Immediately’s bills: $75,000/yr
20 years later: ~$135,000/yr (at 3% inflation)

Planning for tomorrow’s actuality—not in the present day’s—ensures your money move can assist your future.

Step 3: Subtract assured revenue

Determine dependable revenue streams, like Social Safety, pensions, or annuities, and subtract them out of your complete bills to search out your revenue hole.

Instance: In case your annual retirement bills are $100,000 and also you anticipate $60,000 in assured revenue, your hole is $40,000—the quantity your investments might want to cowl.

Bridging the Hole with Passive Actual Property Investments

Actual property is among the handiest methods to create dependable revenue and shield towards inflation. Let’s discover two methods:

1. Actual property debt funds

What they’re: Investments in actual property loans that yield constant returns, typically round 8% yearly.
Why they work: They supply predictable money move with out the complications of property administration.
Instance: Investing $500,000 in a debt fund at 8% generates $40,000 yearly, closing the revenue hole in our earlier instance.

2. Fairness offers

What they’re: Possession stakes in cash-flowing properties like multifamily housing or self-storage services.
Why they work: These investments mix money move (from rents) with long-term appreciation.
Instance: A $250,000 funding yielding 7% cash-on-cash returns generates $17,500 yearly—excellent for funding journey or reinvestment.

Classes from Sarah’s Journey

Sarah’s success didn’t occur in a single day. It was the results of constant planning, a transparent funding technique, and a dedication to aligning her monetary choices together with her targets. Over six years, she grew her portfolio by strategically contributing to investments that matched her desired life-style and legacy.

Remaining Ideas: Your Retirement, Your Legacy

On the finish of the day, retirement planning isn’t nearly overlaying bills—it’s about creating freedom, safety, and impression. Correct money move planning ensures you’re able to reside the life you’ve envisioned and go away a legacy that endures.

Need to dive deeper into these methods? Discover them additional in my e-book, Cash For Tomorrow: Easy methods to Construct and Shield Generational Wealth, the place I break down the precise steps to safe your monetary future.

Your future is price it—begin planning for it in the present day.

Shield your wealth legacy with an ironclad generational wealth plan

Taxes, insurance coverage, curiosity, charges, payments…how are you going to purchase wealth, not to mention cross it down, when there are main pitfalls at each flip? In Cash for Tomorrow, Whitney will allow you to construct an ironclad wealth plan so you may safeguard your hard-earned wealth and cross it on for generations to return.

Are Your Money Stream Calculations Prepared for Retirement?

What Is Money Stream Planning for Retirement?

Why Money Stream Calculations Matter