Retirement planning can be overwhelming and scary for some but with proper planning, it can become an enjoyable journey. Financial security in retirement doesn’t just happen — it takes planning, commitment, and money. Here are four questions to ask to identify your retirement goals and needs.
1. What would you like to do in your retirement years?
This can mean a lot of things such as relocating to a different state or working a part-time job for extra income. Other considerations are your living needs such as downsizing or moving into a retirement community. Do you plan to travel or take up expensive hobbies? Determining what retirement means for you and your family will go a long way in helping you figure out what your financial needs will be.
2. When would you like to retire?
Retirement age is different for many and as we live longer it is being pushed back further. Determining at what age you will retire is important in the planning process as it will have a big impact on how your financial situation will change, which includes when to take social security and how to structure other sources of income.
3. Do you have a clean bill of health?
Medical costs in retirement can be a huge burden if not planned for properly as costs have been rising above 10% per year on average. It’s important to understand current ailments and medical conditions and how they may affect you financially. Focusing on preventive care can potentially help with minimizing future medical costs which can aid in a more prosperous retirement for you and your family.
4. How much is your nest egg?
Creating a budget will be a key component in determining how much income you will need to have an enjoyable retirement. It’s important to create a plan around your savings to determine if it can sustain the income you desire. You may need to take on part-time work or occasional freelance work to supplement your income. If you are not ok with this, you may need to push retirement back a year or two, so it is important to have a solid plan in place.
Working with a professional financial advisor can be the difference between success and failure while planning for retirement. A professional planner can bring you closer to the future by helping with creating a personalized plan that will encompass your short-term goals as well as your long-term objectives.
Signet Financial Management has been working with retirees for over 30 years and we pride ourselves on helping clients have the retirement they deserve. Please contact us at 800-390-2755 for a free retirement consultation.