What to know about the first steps in retirement planning
April 28, 2021 at 7:00 AM
Taking the first step in retirement planning will make the rest of the journey feel like muscle memory.

Planning for retirement is daunting. It’s essentially preparing for decades of unemployment. If you’re unsure where to start, we’re here with the first steps in retirement planning to make it more manageable. At Help You Retire, we prioritize you in the present and future. Furthermore, we fully advocate for OWLFI as the premier retirement planning firm. They synthesize all needs seamlessly to meet your financial targets.

Here are the first steps of retirement planning:

1. Assess retirement needs

The first step in retirement planning is honestly assessing your retirement needs.

More importantly, by clearly understanding your retirement needs, you’ll be able to establish the parameters of your retirement portfolio. People mistakenly assume that, after retirement, their spending will be 70% to 80% of what it was prior.

However, this is unrealistic. For example, if you will still have car payments, mortgage payments, debt, or even if you incur unforeseen medical expenses, this myopic thinking will ruin your retirement. Anticipate spending about 100% of what you did before retirement.

The cost of living is constantly changing. This is the only way to account for that change. Experts agree healthcare will rise 5.5% each year over the next decade. Since people generally live longer, considering this is essential to ensure you’re fully prepared.

If this is overwhelming, OWLFI is perfectly capable of determining your post-retirement needs in granular detail.

2. Set retirement goals

As a retiree, it’s important to set goals. This ensures you live a long, healthy life and provides a crucial sense of purpose. You’ll have more time than ever before to pursue passions. One of the first steps in retirement planning is setting goals. However, saving for goals is also imperative.

Whether you want to travel, learn a language, or volunteer, these have built-in expenses that are critical to anticipate. Plus, in retirement, it’s reasonable to expect a certain lifestyle. After all, you’ve worked your whole life to earn it.

The fact is you’ll still be shopping, spending money on gas, and paying bills. Plus, particularly for parents, you may have to consider your kids’ education.

Essentially, your retirement savings should be more than the bare necessities. It should include retirement activities, unexpected expenses mid-retirement, and account for all what-if scenarios late in retirement.

3. Figure out what you have

Saving is the first step in retirement planning, but knowing what to save is impossible if you don’t take inventory of what you already have.

Retirement planning should supply you with a full, honest picture of your situation. When planning for retirement, it’s essential to take stock of all current money and assets. This requires meticulous, diligent work.

Understanding this gives you an idea of what you’re doing well and what areas to develop. This is essential for devising retirement planning strategies. However, if you’re just starting and don’t have much to account for, don’t worry!

Simply understanding what you do have will be a vital foundation to build on. What matters most is being thorough. Whatever you do, keep track of everything. The only way to know where you’re going is to understand where you’re at.

Luckily, if locating money and itemizing your assets is intimidating, advisors at OWLFI can guarantee nothing is unaccounted for.

Contact OWLFI now to start planning!

If even the first step in retirement planning intimidates you, OWLFI is your premier solution. Their expert advisors will guide you through the process and ensure your personal financial goals are always prioritized. Finally, with OWLFI, retirement planning is as easy as retirement itself. Their process guarantees minimal work and minimal stress, making it the perfect dress rehearsal for retirement. Contact OWLFI now to start planning!

Subscribe to our newsletter
Let's keep in touch!

Stay updated on our news and events! Sign up to receive our newsletter.