Financial Planning for Retirement

Is retirement a right or luxury?

The goal for many working Americans is to retire, but some would like to retire earlier.

What’s a reasonable retirement age?  45, 50, 55, 60, 70 never?

Of course, that’s up to you — if you’re willing to work hard.

Retiring early or achieving your financial independence can be done. You may just need to pay a little closer attention to your financial plan and work a little harder, but it’s possible.If you would like to start on the track to an early retirement and gain your financial independence then speaking with a wealth advisor or financial advisor may be valuable. A wealth advisor may help you invest your money properly so have the potential to maximize your portfolio and reduce your taxation at the same time. A wealth advisor may be able to take the proper steps with you that will allow you to retire earlier. You should go through these steps with a wealth advisor so you can get a solid idea of what your goals are now and how you can work together to achieve your goals.

Make Goals for Your Future

Describe your dreams, goals and the vision of your retirement with your wealth advisor. These goals can consist of, traveling to a country where you have always dreamed of going, relocating in retirement, or just not having to wake up in the morning and go to work. It’s important to go over your goals with your wealth advisor for him or her to properly service you and help you achieve your goals.

Retirement may seem a bit far away. Sometimes unfathomable. Especially if it’s 10, 20 or even 30 years away. But you know you should plan — because people say it’s the right thing to do.

Your not the status quo, and retirement doesn’t have to be far off in the distance either. You get to make it whatever and however, you want. But only if you plan correctly and achieve your goals.

Retirement doesn’t have to be a rocking chair on a porch or a retirement community with pool yoga. Go ahead and reinvent what retirement means to you. Set that goal and become financially independent on your terms.

Determine How Much You Need to Earn

Identify how your spending habits may change during retirement. Will you spend more or less? Do you need to plan for additional health coverage? What other financial gaps will you need to fill?

Create a budget today and plan for how that may change in retirement. Once your paychecks stop, you’ll have to make sure that you can recreate your income through your savings.

Reaching your financial independence can be one of the most liberating times in your life. But also one of the biggest and scariest changes too.

There are no do-overs in retirement.

Determine What You Will Need in Your Savings Account

Keep in mind that you are going to need your money to last you 30, 40 or 50 years. People keep on living longer all the time.

The issue with needing your money to last that long is that the rates of 4% to 4.5% that wealth advisors say are safe to withdraw from your investment portfolio may not be right for you. Depending on many factors including tax, time frame and risk tolerance may impact your portfolio performance and the allocation necessary to succeed financially. For someone retiring early, this could cause them to run out of money.

In order to avoid running out of money by withdrawing too much from your investment portfolio, a wealth advisor may advise you only to spend down your investment portfolio at a rate of 3% or less.