Whether you’re 20 or 60 or older, you hear the word retirement thrown around a lot. The younger you are the idea of retirement seems so far away and a concern for another date and time. The older you get the more you worry that you haven’t saved enough, how does social security factor in/work, and/or can I afford to retire given the state of the economy?
Retirement means a lot of different things to a lot of different people. But planning for it is key to success, no matter the definition. For example, you love what you do and can’t think of ever retiring and not coming in again. Your definition of retirement may mean stop working 70 hours a week and working 20-30 hours or having the financial capability to come in/out as you please. On the other hand you may want retirement to be never coming in or talking to the office ever again. Maybe it’s something in between. Retirement is whatever you want to make it, but make sure you can define it for yourself and create a plan on how to get there.
Here’s great things to consider when creating your plan:
What is your time frame for your retirement vision?
What is the amount of risk you’re comfortable with?
What are the appropriate investment vehicles to get you there?
How does inflation factor in?
How does social security factor in?
What is the total amount you’re shooting for?
What have you done so far to save for retirement (IRA’s, 401k’s, etc)?
Does this seem a little overwhelming? Understandable, especially when you have a full time job, a family and want to sleep a few hours at night. Whether you’re an expert in numbers and problem solving, sometimes taking the time out to sit down and create a plan can just be the straw that breaks the camel’s back. Hiring a financial planner to guide you through the process and do the hard work for you can save you money and valuable family time. A financial planner is there to help explain where you are, help develop a picture of what you want retirement to look like, and how to get there in a way that is right for you.
If you’re curious to see how you’re doing make sure to check out Waddell & Reed’s personal retirement assessment calculator to see if you’re saving enough!
Until next time, stay sane in this crazy economy!
– Financial Lanscaper
PS. If your plan is to win the lottery to pay for “retirement,” make sure that step 1 is buy a lottery ticket. ;P
