A Guide to Setting Goals for Your Retirement

Are you wondering how to set yourself up for retirement? Thinking you’ve reached the retirement age? It’s important to take the time to make sure you can enjoy the next phase of your life. Ensuring you do the right financial planning for retirement is essential, and setting your goals is a great way to get […]...
David Roberts
September 13, 2022

Are you wondering how to set yourself up for retirement? Thinking you’ve reached the retirement age? It’s important to take the time to make sure you can enjoy the next phase of your life. Ensuring you do the right financial planning for retirement is essential, and setting your goals is a great way to get started. Naturally, the retirement lifestyle should be as comfortable as possible.

Get ahead of the game with our tips to help you develop your financial plan, savings, and expenses for retirement.

We’ve developed a retirement planning guide to give you an overview of how to set retirement goals. Things like your investment strategy, financial security, and a savings goal all have to be taken into consideration. That’s why we’ll give you a starting off point so you can tackle those personal retirement goals. The sooner, the better!

Why Should You Set Retirement Goals?

Having goals in retirement can help set you up for the rest of your life. Here are some prime reasons you should think about your goals for retirement.

Comfortable Retirement – After working for so long, all you want to do when you retire is kick back and relax. Saving for your retirement right now can help make sure you get the standard of living you deserve.

Retirement Benefits – Social Security is part of almost everyone’s retirement plan. This provides a retirement income for qualified retirees that they can live off of. It’s automatically taken out of your current income and stored away for later. As you get closer to retirement age, it’s time to start checking out your retirement savings that have accumulated through the years because of Social Security.

These benefits can be paid to you through a monthly income from your current savings and your Social Security. This can help you ensure long-term care for yourself. 

Stock Market – No matter what the state of the economy is, allocating for expenses in retirement is a smart move. If you start developing your goals now, you can begin saving for retirement. By starting to save now, regardless of where the market is at, you can have money set aside for retirement. Consider developing your retirement goals as an investment decision. You’ll receive those investment returns when you’re able to live the good life in your golden years.

How to Achieve Your Retirement Goals

Now that we’ve established why retirement goals are so important, it’s time to dive into the how’s. The steps below should help you put your best foot forward when it comes to your financial goals and retirement strategy

1) Understand your timeline

Your retirement age should help provide you with a framework for how to proceed. Knowing when you will retire is the best way to pace your goals so you allocate for future living expenses effectively.

It’s best to start early! When you have a ways to go before retiring and you’ve already started to create retirement goals, you are likelier to have a higher risk tolerance. Your investment portfolio can withstand the volatility of a stock market if you’re planning with several years to pace yourself.

2) Determine your spending needs

While most people assume they won’t spend as much when they retire, that’s typically not the case. Make sure you’re being realistic when it comes to your spending habits and developing a retirement portfolio.

Put aside some of your annual income and create a nest egg for when retirement finally does arrive. Because who knows? You may want to take that cruise you’ve never had time for in the past. Or something unpredictable like medical expenses could pop up.

With more free time on your hands in the future, assessing your current retirement savings can prove valuable in determining how much more you need to store up. Make forming a retirement savings goal your priority. 

3) Calculate your investments

Your investment portfolio now is what will determine your retirement future. A retirement calculator can be helpful in understanding finances.

Take into account Social Security, real estate, income in retirement, and more! Of course, your current annual income plays a big factor in future plans. Creating retirement accounts can also help you organize your funds, and prevent you from being tempted to spend the money now.

The rate of return on an investment should realistically meet your expectations, and can be calculated. It can be used to determine the viability of your investment portfolio when considering how that will be channeled into retirement assets. 

Make the best financial decisions for yourself by forming your investment objectives today! The retirement goals calculator is a great way to assess your current financial circumstances and do what needs to be done to make your retirement dreams possible. 

Retirement Savings Plan

• Create a timeline for yourself – This is the best method to map your way to your retirement goals. Take into account your age, desired retirement age, annual returns on your salary, inflation rate, and other economic factors.

• Assess your spending – What will you spend your money on when you retire? Will you be traveling? Spoiling your grandkids? While it’s up to you, start thinking now about how best to allocate money for your retirement account.

• Calculate After-Tax Rate – This is a crucial amount that should get determined through a retirement goals calculator. Consider this amount when it comes to your investments, so you can be aware of how your retirement portfolio will perform. If you’re investing for your account, you’ll probably be taxed. So the rate of return after taxes must be calculated.

• Risk Tolerance vs Investment Goals – You must weigh your concerns about risk aversion against your desire to achieve your investment goals. Your portfolio should balance the needs of both. When it comes to your portfolio, make sure you’re comfortable with the risks being taken.

     *Be wary of overmanaging your portfolio. If you’re unhappy with your mutual funds right now,           remember that the market goes up and down. Playing the long game can lead to greater mutual fund success in the future.

• Keep Track of Estate Planning – For a solid and well-rounded retirement plan, estate planning is key. This is where expertise from lawyers, accountants, and financial planners comes in. Life insurance must also be factored in. The right coverage can go a long way for your loved ones and make sure your assets are protected.

     *Consider tax planning as well. What are the tax implications of leaving your assets to surviving loved ones? You’ll want to compare the benefits of gifting them or passing them through the estate process. 

Looking For A Financial Advisor?

Financial planning for retirement now can put you in a good position later on in life. If you’re searching for a way to achieve your ideal retirement, a financial advisor might be just what you need. Many places offer financial planning consulting services to answer all your retirement questions and give you investment advice. 

Explore your options to find a retirement planning advisor who will work closely with you to meet all of your needs. Your financial future may depend on it!

Key Takeaways

Many folks haven’t even started thinking about a retirement plan yet. You’re already ahead of the game. To keep up the momentum, remember to assess your current situation. Everyone is different, which means you need to find the best retirement plan that works for you.

If you follow our guide, and explore options when it comes to financial advisors, you’ll be in great shape for the rest of your life.

Why Hire A Retirement Financial Advisor?

Why Hire A Retirement Financial Advisor?

Planning for retirement can sound like a daunting task. There are many different ways to reach your financial retirement goals, and finding the best approach can be tricky. With retirement being a major milestone in most people’s lives, the pressure is even higher.

Early Retirement: What You Need To Know

Early Retirement: What You Need To Know

Early retirement might sound like an impossible dream. We all hope that if we work hard enough and save our money right that we can have a long retirement filled with travel and time doing what we love. There are many benefits of early retirement. It can allow you to relax and experience improvements to your health, and discover new opportunities to pursue the things you are passionate about.

Planning Early For Inherited IRA Distributions Matters

Planning Early For Inherited IRA Distributions Matters

There is no crystal ball for taxes or the future tax landscape, so waiting too long to begin your RMDs from an inherited IRA could result in adverse tax consequences. Coordinating the timing of your RMDs with tax factors such as anticipated income, deductions, and credits could help to minimize the negative impact on your inheritance.

Are You Including Social Security Income In Your Retirement Plan?

Are You Including Social Security Income In Your Retirement Plan?

Since Social Security impacts us all, it’s important that we stay informed about the reality of the program’s financial situation and the key role it plays in our financial lives. Its future impact on retirement planning should not be sold short. This applies to everyone, not just those who will rely heavily on their Social Security income to keep them from running out of money in retirement.

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Many have no financial plan for retirement. At Plan For Your Goals, my mission is to help both the newly retired and the nearly retired take control of their finances with an evidence-based plan so they can retire with confidence.

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