Gaining Traction on Your Retirement Plans

You are capable of great accomplishment.  The challenge is to stay focused on the important and not be detoured by the urgent.  Let us start planning today for a wonderful tomorrow.  First, it is critical that you write down the ideal retirement phase of life.  List those things and places that excite you.  Who will you spend time with?  Where will you go?  Will you spend summers in Canada?  Will you spend winters in Florida?  These are valid questions that require thought in the processing phase of your planning.

After documenting the intended outcomes, it is required that you focus on the funding phase of the plan.  We believe all plans of retirees can become reality if an individual dedicates enough planning and saving time to the process.  To guide you in this model of life planning, think about the resources needed for each of the areas you wish to explore while in retirement.  If it is travel, think about the requirements of logistical issues such as transportation, housing, food, sites to be seen, etc.  Each of these can be quantified through estimating the amounts needed to see them through.

Will you be wanting to assist in the college education needs of your grandchildren?  If so, it is critical that you estimate a reasonable amount of funds to be invested appropriately for this desire.  College funding needs increase approximately 5 – 6% per year for state-sponsored universities in the United States.  What if your grandchild prefers a skilled labor position?  Technical training institutions are affordable if proper planning is performed.  Depending on the age of your grandchild when you start accumulating for their education, you may need to be more intentional with the annual savings amounts.  If you wait until the child is age 14, it will take a more substantial annual savings amount to meet the need for education purposes.

Another area of life that many of our clients fail to consider in retirement is time utilization.  What will do each day to keep your mind and body in the best shape possible?  One of our clients retired at 62 years of age.  He sold his company and plenty of money to do whatever he desired in retirement.  However, he failed to consider the qualitative matters of retirement.  “What will I do with all this time each day?” he asked me.  Failing to plan for your daily activities with civic clubs, sporting events, travel, educational activities, etc., you will quickly realize that you failed to plan adequately for the time you have each day.

My father attempted to retire twice before he finally got it right.  To many of us, financial planning for retirement is the easiest piece of the puzzle.  Money is finite and can be easily transferred to others.  However, time is intangible and can become a harsh reality to someone who had responsibilities with others to occupy their time and challenges of thought during their career.  After a brief six months, my dad was back at work doing something he loved and finding himself happier than he had been in retirement.

Lastly, it is critical for you to plan for health issues in retirement.  Do you wish to convalesce at home, or would you mind a rehabilitation center?  Your retirement planning should consider the details of aging and how to address areas of life that may change without your control.  Most of our clients prefer to age gracefully while living in their own home.  Home health aides and medical providers may be needed to accommodate their request.  This type of personalized health care will cost more than other types of care.  Again, this is something that should be considered in your plan.

If you are thinking about retiring in the next two years, it is critical that you develop a plan of action that meets all the areas of life with appropriate financing documented.  A CERTIFIED FINANCIAL PLANNER™ professional can assist you in developing, funding, and monitoring a plan that empowers you to be in control of your future.  Do not depend on others to care for you when you have the capabilities to plan for your own care.  Take control of your future.  Dream, plan, and document your ideal retirement phase of life.  Then execute the plan with your greatest focus of joy in your heart.  Be the exception in life – plan your game and execute with all your might and resources.  Go ahead; live your life by your design!