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.

What Accounts Should You Consider If You Want To Save More?

What Accounts Should You Consider If You Want To Save More?

Investors often ease into their savings strategy with small investments into their 401(k) plans. Later, as their finances allow, they “graduate” into other investment vehicles for their retirement nest eggs, such as IRAs and taxable accounts. As their financial lives become more complex, many investors will ask, “If I have a fixed sum of money to invest every month or every year, what accounts should I consider if I want to save more?”

Will Your Social Security Benefit Be Reduced?

Will Your Social Security Benefit Be Reduced?

Choosing the optimal time to start receiving your Social Security benefit is an important step toward ensuring that your retirement income and savings will last throughout the rest of your life. No one wants to leave benefit dollars on the table due to a poor timing decision, not even those who have adequate savings and pensions and are not relying upon Social Security to fund their retirement. The problem folks are facing, though, is that choosing an optimal time to claim their benefit is neither simple nor straightforward.

Lease Or Buy: The Automobile Question

Lease Or Buy: The Automobile Question

To help you gain clarity for your decision-making, I’d like to suggest my flowchart, “Should I Lease Or Buy My Next Automobile?”. You’ll find this guide helpful whether you have an immediate, unplanned need or you’re navigating the emotional or philosophical issues involved in leasing versus buying your next vehicle.

Get in Touch

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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.

Contact

Branch Office: 5954 E Bay Blvd, Gulf Breeze, FL 32563

(850) 786-3400 ext. 101

david@planforyourgoals.com

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