When Retirement Seems Out of Reach
Setting goals is a great way to get things done. That same philosophy can work for retirement as well. But some retirement goals can seem daunting. If you feel like you’ll never reach your retirement goals, we’ve put together a list of things you can do to focus less on the big picture and more on specific details.
Retirement Goals are Based on Assumptions
Whether you use a simple online calculator or run a detailed analysis, your retirement savings goal is based on certain assumptions that will change. That’s why it’s so important to review your retirement savings goal and its underlying assumptions once per year and when life events occur. This will help ensure that your goals continue to reflect your changing life circumstances as well as market and economic conditions.
Break it Down
Instead of viewing your goal as a series of digits, try to break it down into an anticipated monthly income need. That way you can view this monthly need alongside your estimated monthly Social Security benefit, income from your retirement savings, and any pension or other income you expect. This can help the planning process seem less daunting and more manageable.
Retirement Isn’t All Fun and Games
Ask anyone enjoying retirement what makes them happy, and you’ll often hear about time with friends, reading, or simply relaxing. Yes, vacations are important, but you don’t have to fly to Europe twice a year or take a cruise every winter. In other words, the less you spend in retirement, the more you’ll have for retirement.
The Bottom Line
Setting a goal is a very important first step in putting together your retirement savings strategy, but don’t let the numbers scare you. As long as you have an estimate in mind, break it down to a monthly need, review it regularly, and increase your investments whenever possible. With some simple planning, you’ll be doing your best to prepare for whatever the future may bring.
Schedule your complimentary retirement consultation with our CFS* Financial Advisor today. Call Matt Edwards at 503.366.6341 or email [email protected].
