Retirement planning is the process of determining retirement income goals, actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets. In the simplest sense, retirement planning is the planning one does to be prepared for life after work ends, not just financially but in all aspects of life. The non-financial aspects include lifestyle choices as how to spend time in retirement, where to live, when to completely stop working, etc. A holistic approach to retirement planning considers all these areas.
The emphasis one puts on retirement planning changes throughout different life stages. Early in a person’s working life, retirement planning is about setting aside enough money for retirement. During the middle of an individual’s career, it might include setting specific income or asset goals and taking the steps to achieve them. In the few years leading up to retirement, financial assets are more or less determined, so the emphasis changes to non-financial lifestyle aspects. To live well in retirement, you can no longer rely solely on a company pension plan or social security. Instead, you will have to depend on how skillfully you plan and invest, and whether you make good use of tax-advantaged savings plans such as 401(k)s and IRAs.
Don’t take the risk of planning your retirement on your own. Get on board with the professionals with Black Harbor Wealth Management and get your complimentary consultation. We will guide you in achieving your retirement goals.