Chapter 3. How to write your own retirement planning guide?

Each person is unique and no two people have identical needs. Thus, it is very important you design your own retirement planning guide. Depending on your age and where you are in your retirement plans, some of the items you might already have set in motion, others you might want to establish.

 

How to

YOUR plan needs to include these crucial and fundamental elements.

Lifestyle

• • Do you know what you want to do after retirement?
  • Will you be starting a new career?
  • Will you volunteer or work from home?
  • Will you be traveling or keeping the status quo?
  • You may even postpone retirement for as long as you can.
  • Think about which lifestyle you would like to pursue. 

Budget

• • Did you forecast a budget for your golden years?
  • Is it based on your current standard?
  • Will you downsize your house and trim expenses?
  • Can you estimate your future fixed and variable expenses?
  • What is the minimum you will need to sustain to be comfortable in your golden years? 

Health and medical issues

• • Do you enjoy good health?
  • Do you expect chronic medical problems as you get older?
  • Do you have a contingency plan if you need to retire early?
  • Will you have or be able to get medical insurance?

Income

• • What will be the primary source of your income?
  • Do you have a pension?
  • Do you have an employer-sponsored retirement plan, if yes, when will you reach eligibility?
  • Will you qualify for social security benefits?
  • Do you have personal saving, investments, or emergency funds you can liquidate?

Assets

• • Do you have an inventory listing of all of your assets over the years?
  • Did you have financial relationships with prior employers?
  • Can you account for your investments?
    • If not, you will need to create a life-long dossier of your financial wealth.

Debts

• • Will you be free of all consumer debts?
  • What about your mortgage or student loans?

Legal

• • Do you have your legal status in check?
  • How do you ensure your wishes will be respected if anything happens to you?
    • If not, you will need to create a life-long dossier of your legal documents, such as a will, trust, power of attorney, living will, medical directive, general or specific power of attorney, estate executor, or guardian (as needed).

Family matters

• • Do you have your beneficiaries updated on all your documents?
  • Do you plan to provide for family members after you are gone?
  • Do you need to invest in life insurance?

 

Practice

Now you know the elements you need to write your own retirement planning guide. Think of paying it forward and discuss your plans with a friend or a family member.

 

Congratulations! You can move on to Chapter 4. How to avoid common and costly mistakes in retirement planning?

To review the full module on Retirement planning, click here.