Retirement Financial Planning
From Here To There

Think retirement financial planning is overwhelming?
If you've ever talked to a good certified financial planner, you'll know this already. A good one will have helped you take the steps. But many families fumble along. And what a shock that can turn out to be.

When I started caring for my father, I was lucky in that he had always been very astute with his retirement financial planning. And it was something he'd always taught us about when we were young. Working with a financial planning was something I was used to -- in fact, I had literally worked for one years ago. That was quite an education that I will always be grateful for.

I was also lucky that it was my brother who has the power of attorney for Dad (he is also a certified financial planner) and was taking care of the big-picture matters. But still, I had to take care the every day financial issues, the paying of bills, doing the banking, etc.

And I came to realize just how intensely important it is to have one's retirement financial planning in order. Including and especially for one's family members. Thank heavens my father did. Because at age 93 when I started caring for him, it would have been pretty difficult to get matters in order then.

So you may be reading this for any of several reasons – you are already a senior citizen and retired and just checking in on financial planning; you are ready to retire soon and want to know more about financial planning for retirement; or you're a baby boomer planning ahead (or planning on planning); or perhaps helping with elderly problems of a loved one. This page may offer a few helpful hints that I have learned along the way, both as a caregiver, and in a previous career.

So…do you really feel like you’re on top of your finances?
Do you know your monthly budget to a T? This is a retirement financial planning "must." Are you living within your budget or a bit on the concerned side? Do you even know where to start? Are you perhaps a bit in denial about the whole thing and prefer to just not think about it?

Then there may be the matter of finding a financial planner -- that is, a good one. Do you currently work with a financial planner who you believe in and trust? If so, do you thoroughly know what they are talking about and doing with your money? Do you have debt?

Retirement financial planning, as you are aware, can be very complex. There are so many vehicles that can be used, from investments, to savings, to different types of insurance, to annuities. And if you are a homeowner, you may quality for additional income from a reverse mortgage, and Equity Release from Age Partnership is a valuable option in the UK for those aged 55 and over.

We recommend the services of a certified financial planner to help establish your financial goals and meet them. The purpose here is to help you plan The Plan. Or review the one you may already have in place, if necessary.

From Here to There

For retirement financial planning, you need a road map to get you to where you want to go. If you know it. But to get from here to there, you need to start with Here. If you know it.

Where Are You?

Do you really know where you are right now?
Have a good grip on the wheel and the road map all planned out? Sort of? Hate to ask for directions? Took a fork in the road that maybe didn’t work? Totally lost? Or in denial and don’t even want to think about it, but you know you’ve gotta? A road map is no good if you don’t know where Here, your starting point, really is. If you need help figuring this out, see some really easy exercises at how to make a budget. Which is a must for effective retirement financial planning.
Once you know exactly how your Money In – Money Out comparison looks, then it's time to assess. Are you OK, or do you need to tighten the belt? We have some great tips on that page as well.

Is saving even possible?
In thinking ahead for financial retirement planning, it is said one thing you should never cut down on is savings, if you possibly can. If you are still working, always pay yourself first out of every paycheck – make an eventual goal of 10%. Start out with whatever percentage you can, and make it consistent. Gradually build it up. Think you can’t afford it? Actually, what you can’t afford is not to. A good idea is to have it automatically deducted from your pay check, even if you must start small.

You may have heard that an important goal is to put away three to six months worth of monthly expenses as a cushion. Remember, this is not extra spending money. It is your emergency savings fund and should not be touched unless really necessary. This should be maintained as part of your basic retirement financial planning.

Where is "There"?

Now that you know where Here is, where is There? Here are some questions you can ask yourself or your loved one, to make your road map – your Plan. Think in terms of several areas – Financial, Health, Relationships, Recreation, Spiritual, Professional if applicable, Other. All of these areas will be affected by retirement financial planning. You already have an idea of what you need. But it’s equally important to ask yourself or loved one, What do you really want? Be specific in these categories. Take the lid off your imagination. Do not let your old habits and thinking (your inner Dictator) “edit” out what you really want.

Are you in a slight panic because you have debt, especially excessive credit card debt? Then you must read our articles about paying off debt, and bad debt loan. Having personally worked in the field for many years, I can say as a former "insider," the world of debt and collections can be very scary. You do not want to go there. Paying off debt should be an important part of your retirement financial planning.

You’ve probably heard the old sayings…Shoot for the stars and you might hit the ceiling; or don’t shoot too low…you may get what you want. (That’s the point).

Ask yourself the following questions for each of the categories of Financial, Health, Relationships, Recreation, Spiritual, Professional, Other.

What do you really want?
What is your ultimate destination or Goal?
How far away is that Goal?
One a scale of 1 to 10, where are you now?
Where do you want to be in 6 months?
In one year?
In three years?
In five years?
In ten years?
What are some steps that you can begin doing right now?

If you are just beginning early retirement planning,
assess how much time you have as of now to accomplish your ultimate goal. Time must be factored into investment, just as with planning a trip. There are more, very technical questions involved in this, that a professional specializing financial retirement planning can assist you with.

If you have no idea what you really want or are afraid to truly ask yourself, if you kinda know what you really want but have no clue about the How, or if you do not really know how to set goals, see our (really) fun page on Goal Setting. It’s a great little retirement exercise, and not just for retirement financial planning. You may find it very eye-opening, even if you believe you have set good goals.

So you’ve got your Here and your There. You’ve set some financial retirement planning goals. You’ve got a good start on your road map. But what is the best vehicle to use? It depends on what stage of the trip you’re in, your retirement age, how far you have to go and how long you have. Again, you may need some professional retirement advice. Don’t let financial retirement planning issues become serious problems in the future. And if they already are heading that way, seek advice. You may qualify for free services as well. Ask your senior center or other resources.

Also read these important articles:

Elder Estate Planning - and Plunders - And this is not just for elderly! If you are a baby boomer, or a "young" senior, make sure you check this out. This information is important for all ages. See how problems and plunders can be avoided.
Paying Off Debt - I worked in the collections and debt buying industry for years and have inside information that is a must have if you or anyone you know have debt.

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