We seek reclusion from our current job as early as possible to relax all day, take a vacation whenever we want, pursue a lifelong dream, or for any of the other perks that come from retirement. Some of us may be waiting with great anticipation and counting the days until retirement, others will wait with patience and don’t think much of it, and another group of us may not ever want to retire and hate the thought of it.
Whichever group we are in there will come a day when we are not suitable for our current position in our career and we will be forced to retire. That is unless of course you have already achieved financial freedom before retiring and you are self-employed, but even then there will come a time when enough is enough.
The big question is: How do you become prepared for when you either willfully retire yourself, are forced to retire, or obtain the point where you do not have to retire because your job performance does not affect your standard of living? The answer may seem easy, just keep saving and adding recurrent amounts of money to your investments, 401, 403, IRA, and other retirement accounts, and not to withdrawal any money before retirement.
Well, as simple as that may sound that is not even scratching the surface on the complicated matter of being ready for retirement. Although, performing due diligence on having enough money to support your desired standard of living after retirement is important, it is not the only factor to consider. You must also consider insurance, wills, personal trust accounts, and estate planning.
When it comes to your retirement, what are your needs, what is it that you would be the most concerned about, your main priorities? If you were forced to retire today what would be the number one problem, concern or first thing you would prepare and make sure is resolved before anything else? These are the questions you must ask early on to be well prepared when reaching retirement age.
Your answer to these questions will give you guidance on what route you should take when establishing a financial plan. If your main concern is whether or not you will have enough income, then review your investments, or have a financial advisor do it for you. If your main concern heading in to retirement is health coverage, then analyze your current plan(s), and options, and choose which would be most suitable for your needs. If your main concern is your families well being when you pass away, then review life insurance options.
There are many financial and investment areas that should be covered when moving in to retirement. It is important that you do not let planning for your retirement overwhelm you, and relax.
You must approach retirement planning with a positive, big-picture attitude. This mind-set will void you of the emotions that cause so much confusion and fuzziness on where to start, what to do next.
An overall plan must be developed, but it does not have to be done all at once. Take a simplistic approach to developing a personalized plan suited to your needs. A simplistic approach to retirement planning can be done incrementally.
When you do your planning incrementally you are allowed to think most clearly on what financial areas must be assessed and addressed immediately. In the end, this incremental planning gives you the security of knowing your financial matters are getting done correctly and in an organized fashion.