Don’t neglect these 3 elements of your plans for an incredible retirement


As your first few years of work draw to a close and the reality of retirement begins to set in, there are countless things that will require your attention as you prepare for the next phase of life. Your mindset will need to shift from an approach focused primarily on wealth accumulation – which often involves very passive strategies that become almost automatic – to a more active approach focused on combining the preservation and distribution of your wealth. patrimony. Investments, income, taxes, healthcare, and estate planning are all areas of financial life that will require your attention and should no longer be left to chance.

Savings tools, such as 401 (k) s, 403b (s) IRAs, and Roth IRAs, are often used to build our wealth and contribute regularly to it without much thought or personal oversight. This type of passive approach to building wealth worked for many pre-retirees when we had time on our side and could enjoy the power of compounding over many years. However, investments are only part of your overall retirement story and should be managed with all other areas of your financial life in mind that will require your full attention.

1. Get a clear picture of what you want from retirement

To start building a retirement plan that is unique to you, it is essential to understand a few important concepts. The most important thing to understand is probably what will mean the most to you during your golden years. What have you worked hard for in your career and look forward to retirement? It might sound obvious, but if you haven’t really spent the time thinking about these things, it will be next to impossible for your money to do what you want it to do.

I suggest using the acronym FORM to help you get noticed. It stands for Family, Occupation, Leisure and Money. The first three letters are your WHY. The last letter is your HOW.

  • Family: Do you plan to leave a legacy for your children or just manage your money to get the most out of your retirement?
  • Occupation: Is a part-time job doing something you love or is taking that hobby of life and starting a business part of the equation?
  • Recreation: How about traveling the world, learning something new or even being a “snow bird “ during those harsh winter months.

These are just a few of the many things that might interest you the most and make retirement the best time of your life.

2. Get a retirement budget (and write it down)

As your WHY become clear, it’s time to consider the HOW: Money. You should start figuring out a specific budget for your retirement. This should include both your Needs and wants. Who has worked all these years to reduce their standard of living?

Along with understanding your fixed monthly expenses, it’s also important to budget for known and regular discretionary expenses that will enhance your enjoyment. Things like having that weekly date with your spouse, playing in a local golf league, or taking your grandchildren on a family vacation should be considered. However, the next step in having a specific retirement budget is to ensure that it is writing. Don’t overlook the importance of turning your thoughts into an actual document that will serve as the cornerstone of your retirement income plan.

3. Organize your sources of wealth according to the purpose they will serve

Once we have clarified our WHY and understood our specific retirement income needs, we can take the next step: ”Separate our wealth by its objective.It’s about taking our basket of various investments, insurance tools, and bank accounts and creating a coordinated plan that assigns a goal to each.

For example, part of your wealth could be devoted to creating the reliable and predictable income needed to offset any budget shortfalls. Other purposes for your money might include accounting for future health care needs, including long-term care, wealth and estate transfer desires, future housing plans, or even a dedicated portion of continuous growth and accumulation as longevity for the most part is a reality. The idea is to move from a basket of accounts and uncoordinated investment tools to a basket coordinated by specific purposes.

Here are some very important steps you can take to get you started on your retirement preparation. The combination of understanding the things that matter most to you and the costs to fund those dreams can be powerful. This will then allow you to define the purposes of your assets and will allow you to better determine which investment, insurance and banking tools will be the most appropriate for you.

Take action today and start your journey to extraordinary retirement.

Trek Financial, LLC, (Trek) an investment advisor registered with the SEC. Hike 21-115.

Certified Financial Planner and Retirement Planning Specialist, Empowered Financial Management

Nicholas Toman, CFP®, is a Senior Retirement Planner and Investment Advisor at Empowered Financial Management, a company specializing in retirement planning for people within five to seven years of retirement or who have recently retired. and no longer wish to be theirs. Financial Advisor. Nicholas graduated from the University of Wisconsin-Whitewater with a BBA in Accounting and has been a Certified Financial Planner since 2014.

Investment advisory services offered by BCJ Capital Management LLC, a registered investment adviser (SEC). The information presented is for educational purposes only. It should not be construed as specific investment advice, does not take into consideration your specific situation and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. ‘investment. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult a qualified tax professional before implementing any strategy described in this document.


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