Ah, retirement. Everybody can’t wait to get there, and the sooner the better! But how are you going to spend your retirement? Do you have a plan? Keep in mind that retirement planning begins well before you retire.
Many young people think retirement is so far away, they give it little thought. However, it is vital to properly plan for your retirement if you hope to maintain your financial independence and enjoy a comfortable standard of living when you are no longer cashing traditional paychecks.
Keep in mind that these days, retirement does not look the same for everyone. Twenty to thirty years ago, the idea of retirement involved a big retirement party, then moving to Florida to play golf for another 10-15 years. Today, this is less common. Many people enjoy a gradual retirement, where you work significantly fewer hours, focusing on your favorite aspects of your career. All in all, retirement is what you want to make of it!
As with most aspects of your finances, the more time the better when it comes to preparing for retirement.
What Is Retirement Planning?
Retirement planning is the method of establishing a comfort of living in your later years. Once HeartStone knows your goals for retirement, we work backwards to determine the steps needed to achieve those goals. Retirement planning includes recognizing sources of income, estimating expenses, and putting into play a savings program that prudently manages your assets. Future cash flows are estimated to determine if the retirement income goal will be achieved.
Of course, while planning for retirement, your goals can change. Maybe your idea of retirement at age 40 is sitting on a beach somewhere; by age 70 this could change to spending more time with your grand kids. We recognize that goals change, and we are happy to change our planning to suit your needs. Once retirement has been reached, we work with our clients to spend down assets in the most intelligent fashion, minimizing taxes while maximizing current income.
Why Is Retirement Planning Important?
Retirement planning is yet another thing that many people will “get around to doing.” It’s something that’s fairly easy to put off and worry about later, especially when you are young. Life is fickle. If you’re not prepared and don’t have a plan, you may be left dealing with more financial stress than necessary.
Like most people, you probably aren’t planning to work until you draw your last breath. Odds are, you have dreamed about spending your golden years drinking cocktails in a tropical paradise, wrapped in a blanket with a mug of hot chocolate in a cozy mountain retreat, or jet-setting across the globe. These are wonderful dreams but, be advised, it requires careful financial planning to make them happen.
Retirement planning includes a lot more than simply how much you will save and how much you need. It should consider your entire financial picture.
It’s extremely important that you begin planning for retirement early. If you start as soon as possible, you’ll put yourself in the best situation you can. Building your desired nest egg could take decades and, depending on your income, you’ll want as much in your retirement account as you can possibly have. By beginning your investment and retirement plan early on, your money will grow over time, leaving you with enough to realize your retirement goals.
The good news is it is never too early to plan for your life after you’ve finished working. It’s also never too late to start. Don’t think that just because you’re in your 40’s or 50’s – or even later in life – that you cannot take certain steps to be better prepared for the future.
Get Started With Your Retirement Planning Today
Those embarking early on their retirement journey may not have much free to invest, but they do have time to let investments mature, which is a vital and valuable tool.
When your finances are not in the best shape and even making ends meet is difficult, it might not seem like you have any money to set aside for retirement. At HeartStone Advisors, we believe you do have enough to save for retirement – and we’d like to show you how.
With over sixty years in the financial services industry, we’ve helped clients in all financial situations plan for retirement. We will take great care to help you reach the goals you desire so you can have the retirement you deserve.