The Basics of Retirement Planning - Things to Know When Creating Your Plan

The Basics of Retirement Planning - Things to Know When Creating Your Plan The process of planning retirement, particularly if you feel or are nowhere near retirement age, may often seem like a tedious undertaking, though it’s never too early for you or your spouse to begin laying the groundwork for an enjoyable, comfortable and satisfying life following the end of your career. Believe it or not, the retirement planning process doesn’t have to be a tedious one, as numerous tools exist to help you calculate exactly what you’ll need to be in the best position possible; to build a comprehensive plan that will ensure your Golden Years are as financially secure as possible.

Regardless of whether you’re 2, 20 or 50 years away from retirement, it’s never too early to begin formulating a plan. Having an idea of your target retirement date, your expected retirement living expenses, how long your money needs to last and what assets you currently have is the best way to start planning for the future.

Target Date It’s important to first determine a realistic target date you’d like to retire on. Though 65 has been the retirement age standard for many years, longer life spans have forced many to push that number further ahead, as well as to re-factor exactly how many years they will need to plan for financially following that date.

Number of Years to Plan For The main point of retirement planning is to not outlive your savings, making it essential for you to determine and plan for the number of years you have following retirement. It may be helpful to look to parents, grandparents and beyond to more accurately gauge your potential longevity, and to then plan accordingly.

Presumed Retirement Expenses People typically face fewer expenses once they hit retirement, due to such factors as a paidoff mortgage, kids out of school, etc. Take a moment to calculate expenses during your retirement years, which will help give you a better idea of what you’ll need to live during your Golden Years.

Current Inventory Understand what your current assets are, including investments, savings, etc., to give yourself a clearer picture of what you’re working with, and what you have to begin planning for the future.

Mohlman Financial investment and insurance professional Jeffrey Mohlman works hard for his clients so they may better focus on the future. An experienced retirement industry professional, Mohlman works to provide peace of mind, and financial security, to every client her serves.