Updated: Jan 26, 2021
In failing to plan, we unknowingly may be planning to fail. The harsh reality is that many people are unsuccessful in their efforts to plan for retirement, not because they picked the wrong investments, but rather because they procrastinated in getting started in the first place.
When evaluating how ready you are for retirement, it is important to ask yourself the following questions:
Will your current plan provide for the maximum amount of income coming from as many sources as possible?
Will you be able to distribute your assets in the most tax efficient way during your retirement years?
How will you know when you have enough money to retire?
Are you prepared for unforeseen circumstances that might occur?
Some people believe that when they retire, they won’t need as much money as they do during their working years. But ask yourself, do you spend more money on the weekends than during the week? When we retire, we now get to play seven days a week instead of only two! We get to sit back, relax, and enjoy the fruits of our labor. Life Is Good. Or is it?
Once you enter retirement, you should be prepared for many unknowns. How will you adjust your income and spending if tax rates rise in the future? Will you be able to purchase the same items with the same income? And let’s not forget the biggest worry, what if you die too soon or live too long?
Our goals, needs, wants, and wishes are personal and are certainly not limited to the questions previously identified. Organization and clarity is paramount to success in protecting yourself from the unknowns. Retirement is not the only aspect of your financial situation that you should be evaluating and addressing. Make sure you work with someone who takes into account not only your plans for retirement, but also how you will live and thrive today.
Learning how money works, by seeing all of our financial decisions in one comprehensive view, gives us the ability to harness our financial power and make financial decisions in a clear and concise way. It makes sense. Sane, sound, and simple.