Why Retirement Planning ?
With inflation, changes in lifestyles and investments avenues it is crucial to plan your retirement early. Some of these changes include –
[1] Migration of children and collapse of joint family system
[2] Increased life expectancy and therefore savings to last longer
[3] Pensions, if any, insufficient to sustain the living standards
[4] Increased cost of living / spending patterns
[5] Sharp increase in medical expenditure
[6] Costs for nursing home or assisted living
[7] Food and clothing
[8] Housing – Rent or mortgage, property taxes, home owners insurance, maintenance
[9] Utilities – Gas, electricity, water, telephone, cable TV
[10] Transportation – Car payments, auto insurance, gas, maintenance, transportation
[11] Insurance – Medical, dental, life, long term care
[12] Healthcare costs not covered by insurance -Deductibles, co-payments, prescription drugs
[13] Debts – Personal loans, business loans, credit card payments
[14] Education – Children or grandchildrens college expenses
[15] Gifts – Charitable and personal
[16] Recreation – Travel, dining out, hobbies, leisure activities
[17] Care for yourself, your parents or others
[18] Miscellaneous – Personal grooming, pets, club memberships
Retirement Financial Planning Review
Good retirement planning changes with you and is an ongoing process based on your circumstances and life events. That’s why your strategies must also be open to ongoing monitoring and adjusting. The planning can be done as under
[1] Assess Financial Resources
[2] Do a wealth check
[3] Collect and organize financial documents – bank, investments, insurance, estate
[4] Make a list of assets and liabilities and income and expenses
[5] Analyze all of this data and see your overall financial situation
[6] Set financial goals for retirement
[7] Establish how you want to live in retirement – residence, leisure, health care
[8] Make a time frame for achieving your goals
[9] Create your Retirement plan
[10] Calculate the gap between current resources and identified goals
[11] Evaluate savings plan options
[12] Implement Retirement Plan
[13] Establish a savings and investment portfolio to meet your goals – be open to change
[14] Enlist help from financial advisors
[15] Monitor Retirement Plan
[16] Review your goals often – at least annually
[17] Measure your progress
[18] Revise Retirement Plan
Remember, retirement planning is not static, but is flexible, changing dynamic
As your situation progresses, you may need to make adjustments – and we can help