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City of Miramar Blog

Posted on: August 19, 2021

Planning for Your Retirement

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FINANCIAL BLOG FROM YOUR CHIEF FINANCIAL OFFICER

Title: Planning for Your Retirement

Retirement for some is: “I am finally here.” and for others, “That is too far away to begin thinking about it.”  But no matter where you are on the spectrum, having the right plan is important.  Keep your financial plan in perspective and make sure all your financial bases are covered.  Whether your number is $1 to 2 million in savings or being totally debt free from mortgage, credit cards, car loans, student loans, etc. I want you to live your best possible life and not be restrained by money issues or problems.   I want everyone to be able to enjoy it all.

Ultimately, it’s having the income you need to support yourself in the lifestyle you want and with the confidence that your money will last your entire lifetime — no matter how long you live.  Having a solid financial plan for your golden years and being financially independent is an awesome feeling as it allows you to live on your own terms. Tell me, who would not want that?

There are several steps that go into the process of retirement planning, and the sooner you start preparing, the more equipped you'll be to handle retirement in a successful and enjoyable manner. Here are some tips to keep in mind when developing your retirement goals.

Financial Tips to get you ready for a successful retirement whatever that may be, full retirement or partial retirement:

  1. Keep it simple
  2. Start planning early (Don’t wait)
  3. Determine how much time you have to save for retirement
  4. Determine how much to put towards retirement
    1. 15%
    2. 10%
    3. Or less, but work towards the 15% goal
  5. Figure out what you want (What will make you happy)
  6. Don’t get caught up in penny pinching
    1. Expenses 70%
    2. Giving 10%
    3. Investing 10%
    4. Building a business 10%
  7. Start investing now (As soon as possible)
    1. Take advantage of employer match if offered
    2. Start with small amounts of money
    3. Time in the market does matter
    4. Hit your investing goal early 
    5. Don’t be afraid to job hop
  8. Know your why (Stick with it)
    1. Have a reason for achieving your goals
  9. Design your ideal life (live your absolute best life)
    1. Create your vision for what your ideal life looks like
  10. Calculate your retirement number
  11. Review your numbers monthly (Make it a fun date)
  12. Grow your income
  13. Focus on all aspects of your journey, not just on money 

Why should you set retirement goals?

There are several benefits that come with setting retirement goals. The most important advantages of retirement goal setting include:

  • Peace of mind: This helps you eliminate stress. Be sure about your future, don’t leave it up to chance.
  • Better decision making: When you have a solid retirement plan in place, it becomes easier to make financial and career-related decisions that support your retirement goals.
  • Cost efficiency: When you create retirement goals early on, you have access to some more cost-efficient options compared to when you make retirement decisions later in life. 
  • Reduced tax burden: Understanding the tax bracket you will be in when you retire is essential to properly planning for taxes you'll be required to pay. 
  • Retirement on your own terms: Planning for possible obstacles ensures you're prepared when it comes time to retire and that your retirement isn't delayed due to these potential obstacles.

Many individuals are considering retirement for different reasons, and some of those same individuals wish they had a better plan in place that could have helped them transition better.  Speaking to many, they also wish they could turn back the hands of time to do things differently.  

My hope is that this article will help those who are not prepared, become prepared, and those that think retirement is a long way off start putting a plan in place to approach this very important decision differently.   

Be prepared for the future. Shift your mindset!  I believe in you!

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