Part 1: Developing A Long-Term Plan For Your Retirement

Getting Started With A Goal Typically, a 65-year-old couple has a joint life expectancy of about 30 years. That means there is a high probability that at least one of them is going to live to age 95. They are going to need a long-term retirement plan that gives them the confidence about the future that they want. For those currently planning for retirement and developing their long-term plan, there are generally three big questions to be considered: In this first article of a three-part series, I’d like to look specifically at question #1 – what is most important to…...
David Roberts
July 27, 2021
Home » Goals » Part 1: Developing A Long-Term Plan For Your Retirement

Getting Started With A Goal

Typically, a 65-year-old couple has a joint life expectancy of about 30 years. That means there is a high probability that at least one of them is going to live to age 95.

They are going to need a long-term retirement plan that gives them the confidence about the future that they want.

For those currently planning for retirement and developing their long-term plan, there are generally three big questions to be considered:

  1. What is most important to you personally and financially?
  2. Do you have the right financial plan and savings to get there?
  3. How will you stay on track to the end?

In this first article of a three-part series, I’d like to look specifically at question #1 – what is most important to you, both personally and financially?

An effective financial plan will reflect your life and financial goals.

  • What do you want to achieve? 
  • What are you concerned about?
  • What do you want your future to look like?

The problem, however, is that many of your goals will happen so far into the future that it’s easy to put it off these questions until it’s too late to form an effective plan to achieve them.

Many of your goals can be anticipated early on, and a Financial Planner has the skill and means to help you clarify, prioritize, and address them – arriving at a clear and flexible path forward. So, it’s wrong that anyone should have to enter their golden years knowing they didn’t do what they could have to effectively prepare for what is most important.

What Are Your Obstacles?

If you haven’t been working with a Financial Planner or Coach – I get it – this is no easy task to tackle on your own. While you’re busy with your family, career, and life, your time gets gobbled up by what’s right in front of you in the moment. Additionally, there may be obstacles slowing you down or preventing you from planning for your goals:

Blindly following “rules of thumb” – Sometimes this can actually make things worse for you given your unique situation. You’ve likely heard about the “safe” 4% withdrawal rate from a “moderate” portfolio (60% equity assets and 40% fixed income assets) that will allow you to pay for your retirement without running out of money. However, research commissioned by the Alliance For Lifetime Income shows that blindly following this rule of thumb will be costly for some retirees – they will run out of money before the end. The research done by Colin Devine and Ken Mungan credits longer lifespans, healthcare, inflation, and the timing of market volatility as the main culprits working to defeat this decades-old rule of thumb.

Conflicting messages about what works – Financial analysts and the news media have plenty of advice about what you need to do with your money. Without even knowing you or your financial situation, this “help” they’re providing is likely adding to their bottom line rather than to yours. Even your closest family and trusted friends can lead down the wrong path. The problem with their advice is that they only know and have experience with their own finances – not yours.

All this financial information coming your way is just “noise” which can leave you vulnerable to psychological changes and irrational behaviors which can handicap your long-term plan and negatively impact your financial wellbeing.

Burdened with unhealthy financial “scripts” affecting your money decisions – “Scripts” are our unconscious beliefs and feelings about money. They are formed during our childhood through associations with family and friends, and they drive our emotions which help to shape our financial wellbeing – for better or for worse. They directly affect our judgments and decisions about how we handle our money.

Frequent characters in our financial “scripts” are emotional biases and cognitive errors. In my article “Market Timing Has Always Been A Terrible Idea,” I cover some of these and how they affect investors’ behavior with their money.

One of the biggest challenges Financial Planners face when helping clients is to educate them about and help them to manage the behaviors that could prevent them from planning for their goals. For the current or future retiree, failure to do this can be painful:

  • Prolonged uncertainty about whether you will be able to achieve your financial and life goals.
  • Missing out on the moments in your life that would otherwise bring you joy, because you fear that if you spend your savings, you will run out of money before the end.
  • Paying too much in taxes over your lifetime or transferring your tax burden to your heirs who may not be able to handle that very well.
  • Ending up with less money for your retirement, heirs, or the causes you believe in and want to support long after you’re gone.

What Is Most Important To You?

For you to have a long-term retirement plan that gives you the confidence about the future that you want, you are going to have to find a way to get your planning started as early as possible. Today is a great day to start! You’ll also have to identify, overcome, and/or prepare for the obstacles which can hinder the success of your plan – possibly derailing it before the end. Most importantly, for your plan to have a solid foundation, you will have to continually identify and develop what’s most important to you.

I can help you clarify, prioritize, and address a wide variety of financial and life goals covering several important areas:

VisionLifestyleTaxes
ValuesBusinessHealth
EducationRetirementPhilanthropy
FamilyProtectionLegacy

We will work together to answer the question at the beginning of this article:

“What is most important to you personally and financially?”

I know you want to have every opportunity to achieve financial success. Through careful planning, regular communication, and ongoing education, I will help you to stay focused on the plan we set up – a retirement plan built on the solid foundation of your goals.

I hope this information has been helpful for you. I am happy to answer more questions or to help you design a financial plan that will give you the confidence about the future you want. Working with me is easy:

  1. Schedule a phone call
  2. Get the right financial plan for your situation
  3. Keep your plan on track with ongoing support from me

Get in Touch

Understanding your real financial condition in this complex world is tough. That's why so many people struggle to make smart money decisions. At Plan For Your Goals my clients get the financial planning, coaching, and resources they need to make better decisions and plan a better future.

Contact

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

(850) 786-3400

david@planforyourgoals.com

Check David's background on FINRA's BrokerCheck

Plan For Your Goals, LLC (PFYG), is a State registered investment adviser. PFYG may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. PFYG’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, articles written by third parties, firm written newsletters and/or publications, and third-party links. Accordingly, the publication of PFYG’s web site on the Internet should not be construed by any consumer and/or prospective client as our Adviser’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by the Adviser with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of PFYG, A copy of PFYG’s current written disclosure statement discussing PFYG’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov 320683 or from the Adviser upon written request, david@planforyourgoals.com. 

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Adviser), will be profitable or equal any historical performance level(s).

This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.

The Testimonials provided is/are not representative of all experiences.

Insurance products and services are offered and sold through individually licensed and appointed insurance agents.

Simplify Tricky Money Matters!

 

Get INSTANT access to 45 essential decision-making tools. These flowcharts and checklists break down tricky financial concepts into simple terms.

Success! Your access link has been sent.