Retirement planning is not something you can accomplish in one day, or even one year. Truly, we should all plan for retirement from the very first day of our careers, spanning several decades! However, you will certainly accelerate your retirement planning efforts over the last few years of your working life. The following is by no means a complete list of the steps you will need to take, but it should help you focus your planning.
Rearrange your priorities. If you haven’t already, make sure that you’re making your own future a top priority. Retirement savings and life insurance premiums should be one of the first “expenses” you pay each month.
Save as much as you can. Rarely does anyone complain that they saved too much for retirement. So if extra money comes your way, stash it for the future!
Automate your retirement savings plan. Divert part of your paychecks to your retirement account. Automating your savings is the best way to prioritize your retirement.
Set a goal. Some people just “save money for retirement” without really analyzing how much money they need. Set a specific goal, and you’re much more likely to reach it.
Get out of debt. Even if it means working another year or two, getting out of debt before retirement should be a goal. You’ll enjoy your freedom much more this way, too!
Consider your retirement location. Once you’re free from the office life, you can live anywhere you want. Would another location, perhaps one with a lower cost of living, appeal more to you? Location should be a big part of your overall retirement plan, because it will affect your budget.
Create a budget. Speaking of your budget, do you have any idea how much retirement income you need to generate?
Check on your progress regularly. As your assets grow, and your tolerance for risk changes, you might need to alter some aspects of your long-term plans. So remember to meet with us regularly, so that we can check up on your progress and make any necessary adjustments.