Setting Retirement Goals
There is no one-size-fits-all retirement plan. The process begins with getting to know our clients and what they envision for their retirement years. In this article, we’ll provide a few questions to ask yourself to get started.
Why are Retirement Goals Important?
If you don’t have a roadmap, then how will you find your way? Setting goals for retirement is an important first step because they are the foundation of your retirement plan. Not only do they specify the milestones you wish to achieve but also shed light on the financial resources you will need to reach them.
Goal Setting Should Be All Encompassing
Many people associate “retirement goals” with events they want to enjoy after they leave employment. These one-time expenditures, like finally taking the vacation you’ve dreamed about, are certainly part of your retirement goals; however, goal setting should also include your values about money, how you want to spend your free time, and wishes on how you would like to provide for your family.
Questions to Consider
What do you wish to achieve?
Balancing the need to live for today and save for tomorrow can make a big difference in being retirement ready. Perhaps you wish to do volunteer work, purchase an RV, or explore new hobbies. Many people include home remodeling projects or increasing travel and time with family as a top goal. Having a vision on what is meaningful to you will serve as the guide when creating your financial plan as well as keep you engaged and fulfilled throughout your life.
What are your investment concerns?
Are you afraid you will outlive your money? Are you concerned about how taxes or inflation will erode your spendable dollars? How confident are you in your ability to successfully manage your investments for 25+ years of retirement? Having an experienced financial advisor on your side can give you the peace of mind that you are on the right track.
What is your ideal retirement timeline?
At what age would you like to retire and are you interested in part-time work thereafter? Is there an opportune time to take advantage of employer benefits or is there a reason that necessitates retiring early? How much income do you think you need to sustain your lifestyle? A clear timeline will help in evaluating your financial options.
How would a disability affect your lifestyle?
Consider how long you or your spouse would need to work if the other were to become disabled prior to retirement. Would some of your goals and projected expenses change if this occurred? Do you have disability insurance or other resources available to meet your financial and self-care needs?
Do you have plans for gifting?
Do you want to help pay for a grandchild’s education? Is supporting a favorite charity a priority for you? Do you wish to leave assets to your children or family when you pass away? These goals should be incorporated into your retirement plan as well as your estate documents.
Start Planning for your Retirement Today!
Call PFM today to learn more about how we can help you plan your financial future. We’re here to guide you through discovering your retirement goals and them making them a reality. Let our team of financial and investment professionals create a plan tailored to you.