Do you have clear retirement goals and are they achievable?
10 March 2023
Planning for your retirement can be a daunting and unknown task that many either put in the too hard basket or the low priority basket. Dealing with short term needs means many people sometimes don’t focus on their longer-term goals. Working with a financial planner can remove many of the hurdle’s families see when planning for retirement.
While focusing on your day-to-day financial needs can help alleviate short term challenges, this will not help you plan for a comfortable retirement. There will be a time when you will want to stop working and sit back, enjoy a slower pace of life, and rely on all the hard work you have done over many years.
As financial planners we help you address a retirement plan that aligns with your longer-term goals. This will help with the daily, weekly, monthly, and annual decision making that you face when managing your finances.
One easy way to help identify financial goals is to use the SMART acronym. Goals are to be Specific, Measurable, Achievable, Relevant and Timely.
Make your goals Specific
Goal - Retire at age 60 with an annual spend of $80,000 to achieve your desired lifestyle. This then creates questions such as how much you will need to achieve this goal, and how you will save the money to achieve this. A financial planner will work with you to quantify this goal, and by the end you will know what you need to have saved by your targeted retirement age and how to achieve this between now and then.
Build Measurable Goals
A financial planner can meet with you once or twice a year to gauge progress, reassess goals and calculate what you need to do to achieve your goal. Seeing progress should provide continued motivation with your retirement plan. A financial planner will let you know if you are on target or if some adjustments need to be made in you saving or spending habits.
Make goals Achievable
The goals you set should be challenging but shouldn’t be impossible. Be realistic about you want to accomplish. However, some flexibility may be required. Instead of retiring at 60 you may need to work an additional year or two to secure your comfortable retirement.
Make your Financial Goals Relevant to you
Everyone has different needs, desires, and commitments so your financial goals should be personal to you and what you want to achieve. You will need to decide what compromises will need to be made to achieve this goal, and if you are comfortable with how this may impact other areas of your life.
Give your goals a Timely deadline
All goals set should have a time stamp. This also gives you something to look forward to and a realistic end date. It also enables you to manage your daily, weekly, and monthly decision making. What can you do this week, month, or year to help you achieve your goal?
Having confidence in a financial plan can help with those short-term challenges, while still working towards those longer-term goals. Today is a good time to contact a financial planning expert, have a discovery meeting, and get on the path to achieving your SMART retirement goals. Contact our Wealth Management team today.
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