Retirement planning isn't easy. Nearly half of Americans don't feel financially prepared to live to age 75, according to a survey from Northwestern Mutual. But the process is a lot less burdensome if you break the task down into simpler parts. Here are seven questions to ask as you plan for your long-term financial security in retirement.
A recent article in The Christian Science Monitor, titled "Retirement planning 101: Seven questions you need to answer," takes a deep dive into this important matter. As the article notes, the core of the typical retirement plan is the goal of building assets that will provide income, alongside Social Security and other sources, during retirement. But how much is enough? The Christian Science Monitor admits that the math gets complicated fast due to a host of factors.
How much to save depends on variables such as your future wage growth, inflation, longevity, future spending needs, what year you hope to retire, and whether you have a defined pension in addition to Social Security.
Many families find it helpful to consult an estate planning attorney who, along with their financial planner, to design a strategy and set a savings target, along with other steps in retirement planning. The other steps include the essential consideration of beneficiary designations and potential trust arrangements.
The article emphasizes that doing something is much better than doing nothing. So set a goal and keep saving. You can always revise or improve your plans as you move forward.
Start saving and planning today!
If you want to learn more about Estate Planing in Overland Park, KS (and throughout the rest of Kansas and Missouri), please visit my Estate Planning website.
Reference: The Christian Science Monitor (May 11, 2012) "Retirement planning 101: Seven questions you need to answer"