You’re not supposed to talk about money, right? It’s considered rude or impolite, right? Well, let me tell you, based on the many people I’ve worked with (and as a retirement specialist I can assure you, I have worked with many), far too many people “don’t know what they don’t know” when it comes to financial planning and setting up a retirement plan to truly relax in their old age.
When the cashflow is consistent, it can be easy to reschedule retirement planning for another day. When retirement does come looming, the complexities of financial planning can appear daunting. The sheer vastness of financial advice out there can make the whole process more stressful than necessary. As a person who keeps up to date with the latest financial advice and trends, believe me when I say I know that sifting through the information can be a headache to say the least. But that is why there are people like me to help people like you simplify your financial life, protect your assets, and ensure your financial security with a retirement plan that actually lasts.
The number one mistake I see my clients commit is not having a retirement plan at all. Some people think that they do, but if it isn’t written down with clear goals and objectives, then it is null and void. Maybe all the details to consider when it comes to financial planning has led you to procrastinating the retirement plan because, well, you don’t know what you don’t know?
It’s time to take control of your financial future and seek accurate financial advice to guide you through the process. In this article, I will explain key considerations to help you begin writing up a retirement plan that will ensure your financial security into the future. If you’ve put your financial planning off for too long and seek a more immediate solution, then you can book an introductory financial planning meeting with me and we can get the ball rolling. Sign up through this link (2), all you need is your name, phone and email, and I’ll take care of the rest.
The Devil is in the DetailsA lot of people are lulled into complacency by the false sense of security that a pension fund provides. While pension funds are indeed a core aspect of any retirement plan, the reality of the modern financial climate is that they’re unlikely to safeguard your current lifestyle far into the future. It is vital to consider the aspects of finance that will chew through your pension fund faster than you expect.
One of the major causes of leaks in the pension fund is inflation. While the number displayed in your pension fund today may be reassuring, you may need to seek out expert financial advice to help you accurately predict the future standing of your funds. The projections need to take general price increases and the potential fall of purchasing power into account. When it comes to retirement plans, you need to adopt a mindset of the future, not the present.
Another major cause for leaks in the pension fund are tax expenses. Despite all the tax contributions you’ve made in your working years, the taxman does not rest when it is your turn to retire. It is a shame when people forget to factor in tax expenses when financial planning because it can easily be accounted for with some forethought and appropriate mitigation measures.
Too many people overestimate their pension funds. It is dangerous to solely rely on one fund to see you through retirement. It is time to diversify your portfolio. A good place to start is by getting an idea of your current financial situation. A financial audit can help you determine if your financial planning is in order and if it meets all the necessary criteria. Let’s do a fee audit to show you the total cost of investing and advice and what you are getting for those fees. Would that be a valuable exercise for understanding the total cost in dollars for the value received?
Expect the Unexpected
The key to a successful retirement plan is being able to continue the lifestyle you maintained while working and additionally splurging on big luxury items now that you have the time to enjoy them. You want to be able to afford that trip to Greece you’ve always dreamed about. Or now that you finally have the time, you want a yacht to go out cruising. In order to maintain your lifestyle as well as improve it, it is necessary to accurately track your cash flow. Only when you know how much you spend in a month in the present, can you implement the appropriate measures to ensure you have access to that same amount in the future.
Perhaps your financial planning may have been based on your ideal retirement life for a long time, but is it prepared for the unexpected? Many people face severe health complications in their old age. Ideally you want the best of both worlds, the funds to enjoy luxury items as well as maintain your health. Emergency funds are a commonly overlooked aspect of retirement plans because the risk of ill health can seem far-removed from reality when young, fit, and healthy. Keep in mind, emergency funds go beyond health concerns. Unexpected family complications, public policy changes, and housing risks all pose a threat to your retirement plan that may require emergency fund considerations.
It’s Not Just Cash
Your financial planning doesn’t end with bills, cheques, and banks. You own valuable assets that can both impede as well as aid your retirement plan. Assets like housing can be valuable because it ensures your housing security. On the other hand, excess assets can also drain your accounts with taxes and maintenance requirements. As you begin to tap into your retirement funds, you’ll want to decrease risks and expenses, but you also want to retain financial strongholds and income generation. It is a fine line to balance, that is why it requires a clear, well thought out plan.
This is but the tip of the iceberg when it comes to writing up a secure retirement plan. Everyone has to start somewhere, and the best place to start is by writing up a retirement plan. Then, refine your plan by taking into consideration the key aspects mentioned above. To further refine your retirement plan, you can reach out to a professional for expert advice by booking a meeting with me today – do it now by clicking here.
You may also want me to do a fee audit with you. A fee audit involves an analysis of the total cost in dollars for all of your investments and planning fees, what you get for your money, and more importantly, what you don’t get.