REVERSING THE EQUATION
What would happen if 80 percent of the time budgeted for retirement planning was spent on mapping out what one’s life and lifestyle would be like in retirement?
While it might seem counterintuitive, the truth is that retirees will have a more reliable cash-flow plan if they address their situation based on the realities of their health and lifestyle rather than the size of the pile of cash they’ve accumulated.
SET GOALS AND STICK TO THEM
Setting goals for family, travel, charity work and other activities is a central factor in the retirement-planning process. Picking the place to which you want to retire is also extremely important. Identifying living-space needs and location will allow a more clear-cut financial plan to fall into place.
Choose a specific date for retirement and stick to it.Having a precise date in mind allows you to plan your finances accordingly and also creates a finish line for achieving that goal.
TAKE ACTION TODAY
The earlier you start planning, the earlier you can stop working and settle down to a comfortable life. Contributing to a retirement fund—whether it’s a 401(k) or a traditional or Roth IRA—is essential. Start young, contribute consistently over time, and don’t ever raid these funds on impulse, as this money will be necessary later. In the end, we only have one retirement, and it is imperative to do it right.
Kelly Campbell is founder and principal of Campbell Wealth Management, located in Fairfax, Virginia. For more information, visit campbellwealth.com.