If you are within 10 years from Retirement, you are in the “ Retire Soon” zone. Here are “3 Essential Steps to Retirement Planning”.
First: Do a Current Financial Plan
You need to be able to answer the question: When can I afford to retire? The only way to get the right answer is to do a current financial plan. There are many online retirement calculators to help you with your plan as well as financial planners. Your plan should run through your life expectancy and provide you with the target figure of net assets you need saved in order to retire. You will need to list all your sources of current and future income or cash inflow and expenses or cash outflow, as well as all your assets and all your debts.
Second: Save, Save, Save!
After finishing your financial plan, you’ll learn 1 of 3 things about your chances of retiring when you want to – either your ahead of schedule, right on schedule or behind schedule. Let’s focus on if you are behind schedule. In order to catch up, you’ll have to do one of the following – increase your income or decrease your expenses - so that in either case you are able to save more.
Third: What about the Assets?
Now, let’s say you’re able to increase your income or decrease your expenses, and you are saving more money. The 3rd step focuses on making sure those savings are invested properly. You must make sure that your asset allocation meets with your risk tolerance and that you are in the right investment vehicles for you.
Follow my 3 Essential Steps to Retirement Planning and you’ll be on your way to achieving your financial goals. Of course, if you have any questions, be sure to contact me at your earliest convenience.