November 6

0 comments

Financial Planning For Retirement In Three Steps

By Mac McLean

November 6, 2020


No matter how much you love your job, you’ve probably always dreamed of the day when you wave goodbye to your co-workers, walk out the door, and never come back. The day someone becomes a “RETIRED” whatever-it-is-they-do is often one of the best days in their lives. But it’s not a milestone people comfortably reach if they haven’t done any financial planning for retirement.

Financial Planning For Retirement steps:

Here’s a three-step guide that should help you at least start thinking about this topic. Don’t forget it’s never too late, nor too early, to get started. And if you still need help, attend a Retirement Planning Seminars from PlanningCommunity.org where you’ll learn more about financial planning for retirement and meet a certified professional in your area who can help.

  • Step #1: Come up with a number — Most financial planners estimate you’ll need to bring in about 80 percent of your pre-retirement income each year to enjoy your current quality of life when you retire. So, you’ll need $60,000 a year to maintain your lifestyle if you’ll earn $75,000 a year when you retire or $120,000 if you earn $150,000. Keep in mind, though, that this is just an estimate. While you may not need to save money to send your children to college, you could face some massive bills if you need a home health care worker or some other form of long-term care. Do you want to go on a cruise every other year, or will you be happy staying at home? Finally, would you be able to take on a part-time job if it gives you something to do and boost your income by a few hundred dollars each month?
  • Step #2: Come up with a planThe money you get from Social Security will move you toward your annual post-retirement earnings goal, but it will by no means do the job on its own. The biggest chunk of your income in retirement will either come from a pension – if you’re lucky enough to have one – or from the regular disbursements, you receive from annuities, an investment fund, and any retirement savings you’ve built up. Building the nest egg that provides these disbursements is the most significant chunk of work you’ll face when it comes to financial planning.

    Attend a Retirement Planning Seminar today so you can plot the best path forward when it comes to building your retirement nest egg. Also, think about some other steps you could take that would also require some planning. For instance, do you need to keep the three-bedroom house you raised your children in if they only visit three times a year? And, would you move somewhere with a lower property tax, income tax, or sales tax rate than your current location, or are you there for the long haul?
  • Step #3: Stick with it – No retirement plan works if you don’t stick with it for the long-term. Even a person who turned 60 today has another seven years left before they’ve reached their full retirement age and can collect every penny from Social Security that they are due. Avoid checking the balance of your retirement accounts every day – especially with our current, super-volatile stock market where the Dow Jones Industrial Average can lose or gain 300 points because of a single tweet. But keep tabs on these investments somewhat regularly to make sure they’re doing what you want

Also, don’t forget the 3 percent cost of living adjustment you might get at the end of the year would do more work for you in a retirement fund than if it went into your checking account with the rest of your paycheck.

As the title says, these are three not-so-easy steps you can take regarding financial planning for retirement and just that.  If you’ve still got questions, sign up for one of PlanningCommunity.org’s Retirement Planning Seminars and learn from professionals who can take you the rest of the way.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}