Preparing
for your retirement is a journey. And like most journeys, success or failure
often hinges on decisions made early in the trip. Consider some of these
pointers as you develop your personal road map to retirement.
A solid
retirement plan begins with an honest assessment of what your golden years will
look like. Will they involve exotic travel, special purchases, or carefree
living? Or do you plan to live modestly, perhaps working part time? A possible
hint might be to consider how you are living right now. Many people assume that
their living costs will decline later in life, but they often stay about the
same or even increase.
Once
you know how you want to live, it's time
to take stock of your assets. Are your investments where they should be, or do
you have some catching up to do? Keep in mind that those 50 years and older can
contribute an extra amount each year into their 401(k) or IRA to help get up to
speed. And no matter what career stage you are in, be sure to take full
advantage of the matching provision in your employer's plan.
Like
any excursion, your path to retirement will need an occasional tweaking to stay
on course. As your working years draw to a close, consider shifting your asset
allocation from higher risk securities to those with less price volatility and
steadier cash flows. And along the way, take steps to keep your household
budget in check. Think hard before incurring additional debt that might stymie
your retirement plans. Analyze your spending to see what you really need to
live on.
Finally,
assemble a team of professionals to help chart your path. You might need to
coordinate life and health insurance, estate plans, and tax issues to achieve
your retirement goals. If you need assistance, give our office a call.
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