One could argue that all good retirements begin with avision. We refer to vision as retiring to a dream rather than retiring fromwork. Studies have revealed people retiring to an envisioned lifestyle have ahigher retirement satisfaction.
Not everyone aspires to retire. I know, hard to believe. If you are one of those people you are not alone, and it is becoming more commonly acceptable. While working to your last day may not be feasible, many choose a reduced work routine as they transition to retirement, enjoying the professional and financial benefits of continued employment.
There may be many reasons why someone chooses to work longer. They may still have creative juices to contribute to their work. They may be at the top of their financial game and want to ride it out a bit longer. Some find a social life with their coworkers. And some fear the transition from a regular paycheck.
Several studies have revealed that less than 30% of the American population has a financial plan. Additionally, many retirees wish they had better understood the purpose of their money as they saved for retirement. If you are concerned about the longevity of your assets through retirement you are not alone.
The emotions of going from a regular paycheck to using one’s investments as the primary income source can also create obstacles when the retirement vision is unclear. Years of systematic savings, the sale of a business, or even sudden money such as an inheritance can be fraught with emotions.
Vision begins with the purpose of money. What is your money expected to do for you? The next step is measuring the longevity of assets taking into consideration inflation, rate of return, and potential life events such as health needs as you age. A successful financial plan underscores the importance of aligning your values, goals, and risk tolerance to make confident financial decisions. When the technical side of money connects with the emotional side there is greater clarity in the purpose of your money.
Take a moment to peer forward into your future dreams. What do you want to do when working becomes optional? How will you spend your first day of retirement? Who will you spend your days with? How will you feel fulfilled?
Congratulations – you have taken the first step to securing your retirement. Stay tuned for Step 2!
Call us at 602.923.9800 or email affinitywealthadvisorygroup@ampf.com for a complimentary consultation.
Read more articles by Affinity Wealth Advisory Group