Planning Your Retirement Goals

Understand Why Planning is Needed

If you ask yourself what retirement will look like, the answer may be a comfortable home near a golf course. Or perhaps it’s free time to spend with grandchildren, or maybe it’s a cross-country journey or trip around the world? The dreams you have today about the future can be yours tomorrow--if you understand what is required to fulfill them, set a course to meet the challenge, and seek solid professional assistance along the way.

With a retirement date several years in the future, it’s a good time to begin preparation. A look at factors affecting the future of all retirees can help potential retirees focus on the importance of preparing for the future. Consider the following:

• Increased longevity and early retirement are giving Americans more "golden years" to enjoy—and a greater need to plan.

• Inflation, whether high or low,it impactsinvestment dollars, year-after-year reducing"real" valueand, thereby, reducing the purchasing power to make retirement dreams a reality.

• Escalating medical costs affect both young and old, but can be devastating to retirees on a fixed income.

A Checklist for Retirement Planning 

Once goals have been identified, assign a monetary value to them, and then review progress towards the goals. The following checklist is a good starting point.  

• Analyze the present situation, including income, expenses, assets, and liabilities.  

• Find out how much Social Security, veteran’s benefits, and employer-sponsored plans are expected to provide in retirement. 

• Estimate interest earned on savings, investments, and life insurance, as well as any from real estate rentals. 

• Review any life, health, and disability insurance policies to see whether they meet present and future needs. 

• Try to pay off significantly large bills now to avoid facing them once retired. 

• Determine which expenses are likely to decrease after retirement and which are likely to increase. 

A financial professional can help work through items on the checklist, as well as assist in the following areas: 

• Time Needed to Build a "Nest Egg." Many people need assistance understanding the right choice of investments needed to meet the retirement timeline. Options to consider include investments designed for growth, income, or a combination of both. 

• Investment Personality. Understanding this factor is a critical, but often an overlooked ingredient in financial planning. Insight into individual risk tolerance will guide decisions on choosing the right investment vehicles to meet the funding goals.  

• Projected Retirement Needs. The determinations previously made will affect how much is needed to invest in order to reach full funding for retirement goals. 

A financial professional can personalize a plan that works for your unique situation and set you on a path towards your future retirement dreams, whether it’s a home on the golf course, time with grandkids, or that trip around the world.