Financial independence, financial freedom, or retirement, they’re all the same when it boils down to money. It’s a smart retirement we’re after.
With a little bit of planning, your retirement dreams may have the potential to become a reality. Retirement planning is important because saving money for the long term is not enough, you have to plan for retirement and check in on your progress.
Retirement planning is important because saving money for the long term is not enough, you have to plan for retirement and check in on your progress.
When Can I Retire?
As a financial advisor, one of the top questions I hear from clients is “When can I retire?” My answer is always the same, “That depends on your goals.”
Very often people think they can just save money and retirement will work itself out financially. The truth is preparing for retirement takes planning that includes setting a retirement goal age, deciding the amount of income you need and tracking your progress to make sure your goals happen.
Honesty is the best policy
Treat your financial advisor like they’re your doctor. Be open and honest and tell them everything. Talk to your financial advisor about your retirement goals, not just money wise but about the lifestyle you want to have during your retirement years.
What are your plans for retirement?
Maybe you want to travel, maybe you want to continue working part time or maybe you want to take up a new hobby. These retirement goals all cost money. It’s important to be open with your financial advisor about your plans so they can help you plan for retirement and create an income that will create the lifestyle you want to have.
Saving is not enough to retire
Retirement is the phase of your life when your savings become your income.
And this takes planning.
Getting in the habit of saving on a regular basis (one that usually coincides with your paycheck) is the single best retirement planning advice I can give to clients. But keeping money in cash is not a smart long-term savings strategy because with the low-interest rates your money doesn’t grow. Investing your money wisely with a level of risk that makes you comfortable is a great way to plan for your retirement.
A Realistic Smart Retirement
Let’s be honest, your retirement planning has to be realistic. If you don’t have the current lifestyle or income to support massive retirement savings then you shouldn’t expect to have an elaborate retirement lifestyle. Where would the money come from? It’s important to plan for retirement because you want to enjoy your time after work. Relying on government assistance to provide your retirement income is not enough. We all need to save money for retirement. With the help of a financial advisor, we can invest our savings and strive to watch our money grow.
Set your retirement goals and then start saving. If your savings capabilities don’t support your plans then your retirement plan needs to be adjusted.