Retirement Financial Planning
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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? Do you currently work with a financial planner who you believe in and trust? If so, so 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. 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 ThereFor 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. Read these basic retirement financial planning questions.
Net Worth
What are all of your assets worth…
$________ If you own a home, what is it worth
$________ Other property – cabin, second home, rental, land
$________ Large-ticket items such as: RV, big boat or car, Harley
$________ What do you have in savings
$________ What about a 401k and IRA
$________ Pension plan
$________ Other investments
$________ Other
$_______ Total
Total it all up, then subtract out any debt you must repay.
Money In, Money OutThe other simple part of the retirement financial planning puzzle – money in and money out – Income and Expenses. Review the Income and Expense charts below, and add anything else appropriate to your lifestyle. After you have completed it, you will have a good reality check of the financial picture of you or your loved one. Is there more money coming in or going out? What adjustments do you already know you can make? Are you dealing with specific elderly issues that impact finances? Find a qualified professional to assist you with important decisions in your retirement financial planning. This is a crucial piece for dealing with potential elderly financial problems.
Income – Monthly
(Totals for you and spouse)
$__________ Salary/Wages
$__________ Tips
$__________ Commissions/Bonuses
$__________ Social Security
$__________ SS Survivor Benefit
$__________ IRA income
$__________ Pension
$__________ Veteran's Benefits
$__________ 401k, other Retirement Plan
$__________ Annuity
$__________ Interest from Savings
$__________ Investment Income
$__________ Alimony
$__________ Child Support
$__________ Rental Income
$__________ Gifts
$__________ Inheritance
$__________ Other
$__________ Grand Total
Expenses – Monthly
(Totals for you and spouse)
$__________ Rent/Mortgage
$__________ Association fees
$__________ Home maintenance, cleaning
$__________ Yard & gardening
$__________ Heat, electricity
$__________ Water, sewer, garbage
$__________ Phones(s)
$__________ Cable TV
$__________ Internet
$__________ Vehicle payments
$__________ Gas, vehicle maintenance
$__________ Recreational vehicle(s)
$__________ Public transportation
$__________ Debt (credit card, loans)
$__________ Alimony or Child Support
$__________ Groceries
$__________ Personal & household items
$__________ Hair & personal services
$__________ Clothing, cleaners, repair
$__________ Insurance (all types)
$__________ Medical expenses
$__________ Taxes
$__________ Savings & contributions
$__________ Recreation & vacations
$__________ Entertainment, restaurants
$__________ Gifts (incl. Charities & church)
$__________ Other
$__________ Grand Total
How does your Money In – Money Out comparison look? Are you OK, or do you need to tighten the belt? Some good retirement financial planning measures:
Save on heat and electricity by having a professional install an automated energy saving device on your furnace and/or AC unit. When not in use, turn off those lights, appliances, electronics! Cut down on dry cleaning. Refinance your home at a lower interest rate. Read our article with excellent tips about
saving for retirement.
Especially if you think there is no way for you!
Think ahead for financial retirement planning…One thing you should never cut down on is savings. If you are still working, always pay yourself first out of every paycheck – make a goal of 10%. 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.
A little retirement advice -- 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 saying…Shoot for the stars and you might hit the ceiling. So 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?
Where do you want to be in 6 months?
In one year?
In three years?
In five years?
In ten years?
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. 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. Check our tips on vehicles you can use for early retirement planning, or any time. Don’t let financial retirement planning issues become serious elderly problems in the future.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.
Saving For Retirement - This can sometimes seem daunting. But we have some ideas to help just about anyone tuck away a little more.
When To Retire – U.S. Government Tips -- When to retire has become an even more confusing issue during changing economic times. There are specific timelines and tips to help though, from the U.S. Dept. of Labor. Take a look at their guidelines to give you more info in your decisions.
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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