Best Retirement Planning Advisor in Florida
Best Retirement Planning Advisor in Florida
You might be thinking about planning for retirement.
Or you are coming soon to an age that you should be retiring.
Either which, you will have many things you ponder when we suggest the word “retirement”.
Some things that might cross your mind:
- How much money do I need for retirement?
- Why is the retirement age 65 years old?
- Am I ready for retirement?
- Do I really need to retire?
- What is the best age to retire?
- How do I manage my money during retirement?
- How do I build up my wealth to have sufficient funds for retirement?
These are important questions.
You may be planning for your retirement.
And you might be thinking about what kind of risks you should be considering in your planning. The common fear is that in the first 5 years of your retirement, you experience a very large drawdown of your portfolio.
While the sequence of return is a big monster to tackle, high inflation seemed to be a bigger monster.
What type of retirement lifestyle do you want? Best Retirement Planning Advisor in Florida
This is a question that requires you to envision what sort of life you want to be living once you are no longer working.
Some people envision taking annual trips across the world, while others are more content with just enjoying the great outdoors of Florida.
Retirement planning isn’t only about survival, it’s about freedom.
Things such as the ability to take trips and dine out later in life are contingent upon the planning you do today.
Understanding Your Retirement Needs
Knowing where you stand financially and the goals you would like to achieve in your life will make planning for life after work much easier.
What does it cost you to live your preferred lifestyle?
This question is one of the pillars of your plan and will give you a crystal-clear view of exactly how much you’ll need to live your dream life post-work.
To answer this, keep track of your current expenses to gauge how much it would cost you to live a comfortable lifestyle.
How can you control your costs?
Once you have a big-picture view of your current financial world, it’s time to figure out how you can cut down on costs now to improve your financial future
What is your risk tolerance?
This question is the cornerstone of all investing, another essential component of your retirement plan.
Lower-return investments are more secure, while high-yield investments will usually have a higher amount of risk involved.
While there is always a certain amount of fluctuation involved in investing, those with longer to retire will weather these fluctuations better than those who are close to retiring.
That’s why including investing in your planning is so important.
Visualizing Retirement as Cash Flow instead of Pool of money
Instead of thinking about retirement savings as this dreary thing that “will sustain you until you die, focus on specific things you’re saving for.
How many times a week do you want to eat out when you retire? How about a summer in Paris, or a world tour?
Think of your spending in terms of opportunity cost. Forgo new swimsuits this summer, book the savings, and you’re that much closer to adding a pool to your retirement dream house.
Setting those kinds of goals makes saving much more enjoyable. You’re rewarding yourself when you retire rather than just taking from yourself now. Early retirement is a particularly motivating goal. Retiring early is often an eminently achievable goal as long as workers make small, gradual adjustments to savings rates now.
Spending and Cash Flow Needs in Retirement – Best Retirement Planning Advisor in Florida
To plan for your retirement, you need to know the annual expenses that you will need rather well.
To know that:
- imagine how you would spend your days in retirement on a typical week
- what are the one-time expenses you will need to spend on
- what are some of the outstanding liabilities still?
What you need to come up with, is to break your annual expenses into:
- Essential Recurring Expenses
- Essential Non-Recurring Expenses
- Non-Essential Recurring Expenses
- Non-Essential Non-Recurring Expenses
As we lived our lives, we start to stack up a lot of obligations. You may not have realized that these obligations often involve spending more time and money.
Sometimes it is something that you are not very comfortable with.
If your life is filled with obligations, a lot of your expenses are essential expenses.
Then you realize that due to that, you need a lot of money, to feel safe to retire.
Retirement Planning in Florida – Best Retirement Planning Advisor in Florida
Current financial pressure, the instant gratification culture, and the propensity to live in the moment means that for many, retirement planning is simply not a priority.
As a result, only a small minority of us can afford to retire comfortably.
A good investment plan is tailored to your personal circumstances. If you’ve missed the opportunity of starting to save when you started working, or you currently can’t afford to put away as much as you need to, your plan could be adapted to a later retirement date or larger contributions when you can afford to increase them.
Once your plan is in place, review it annually and change your contributions as appropriate.
Making investment decisions is complex. Consider speaking to an independent financial adviser to help you design and maintain a plan best suited to your circumstances.
It’s up to us to be the change. If you think you have too little to save for retirement, think again and think hard. Making space is challenging. Not saving is not an option. Families need to talk about their finances, set goals, create plans, and be honest. If you are able to change your mindset and shift your priorities, your family will not have to have difficult financial discussions.
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