Retirement planning should be conducted long before you retire. You may, one day, reach a point when you realize that you don’t want to (or can’t) work forever. Often this realization is accompanied by an uncertainty about whether or not you have saved enough to enjoy a comfortable retirement. Many clients come to us for the first time late in their careers when they are beginning to think about retirement. If you are like others, you might like to get a “check-up” of sorts on the “health” of your retirement plans. Are you going to be alright or is there more that should be done to prepare?
Our process for helping answer these important questions involves four steps:
Assessing Your Situation
The first step in making the final push towards retirement is to get a thorough understanding of your current financial picture. We take an inventory of investments, assets, and liabilities. We want to also get a detailed understanding of any pensions, annuities, social security benefits, etc. that can play an important role in providing cash flow during retirement.
It is important to determine what will be needed in retirement. There are many important questions we help to answer, such as; how much will you want to spend when you are retired? Do you want to travel more? How much will healthcare cost? Once we have an understanding of what you want, we can help you begin to understand how much savings you will need, and how close you are to accumulating the necessary amount.
Creating a Retirement Plan
Although retirement may be fast-approaching, you still have time to act. Understanding what you have and how much you need helps us determine how much additional savings will be required and how much longer you may need to work before you can reach your retirement goals. With time and a well reasoned plan, you likely still have the opportunity to greatly improve your retirement outlook.
Staying on Track
The first and most difficult step in preparing for retirement is getting organized. But the work does not end there. It is just as important to revisit your plan periodically and make changes as necessary. It may be that you can afford to retire earlier. You may decide you would like to move to a new home or even a new city. You may have inherited money that improves your financial outlook. There are many reasons to revisit your plan, at least once a year, to make sure you are still on track to reach your retirement goals, and adapt to changes when necessary.
If you are beginning to think about your retirement, and would like to make sure you are on track, we would be happy to schedule a meeting or a conference call at your convenience to discuss how we can help.
Horizon Advisors is a Houston based fee-only wealth management firm. Horizon specializes in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.