Money Talks. Does Yours Stutter?

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Common Cents On Finances

Listen – Money Talks. Does yours Stutter?

Money.  Symbol and Tool

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Financial planning is essential at any stage of your life, more so as you prepare for retirement, since it is one of the fundamental pillars of retirement. This chapter discusses a number of important points on this subject, but you are advised and urged to consult a qualified financial planner and accountant for your financial planning.

Obvious question include:

–        Do you have enough money to retire?

–        What if you outlive your money?

–        Can you financially retire “cold turkey” or do you have to semi-retire first?

–        What are your income streams and how solid are they now and will be in retirement?

–        What if you or your spouse need extended nursing care?

–        Will you still be able to do the things in retirement that you have done up till now?

Basically:

  • In what state is your Financial Plan?

Fact: 75% of USA households do not have enough retirement money.

Fact: 65+% of baby boomers say that they will have to work for between 1 to 5 years to ensure they boost their nest egg enough before they can retire.

Fact: Your “retirement number” varies depending on multiple factors not just financials but most of these translate to financials eventually.

Fact: Everyone needs a financial plan before considering retirement, which should address several components including:

–        The lifestyle that you and your partner intend to lead, the expected level of comfort and the type of hobbies that you intend pursuing.

–        The overall health and wellness of both you and your partner,  inclusive of physical, mental, physical, intellectual and spiritual aspects which will become an increasingly important factor in more ways than just financial.

–        Your relationships with your inner-, middle- and outer circles of those whom you care for and who make up your support group.

–        Your ongoing journey of life-long learning.

–        You passions and purpose and how much it will take to fund them.

–        Your travel plans, especially if you move away from your family/close friendship circle.

–        How part time and volunteer work will fit into your retirement in terms of finance and time.

–        Your current investment profile.

–        The country you will retire in.

–        And …. how long you expect to be in retirement. This is a very tough estimate to make.

There is no denying that money is an important component before and in retirement, hence most retirement books and seminars concentrate and cover mostly the financial aspects ahead of social, mental, physical, emotional and spiritual factors – but as can be seen above it is not the ONLY factor.

You will find that your approach to retirement will change as time progresses and as your retirement is being redefined during your periodic 3R Review, Revalue and Re-invigorate sessions.

You will need to work through the following three steps in an honest and open dialogue between yourself and your life’s partner (and business partners you may have):

–        Evaluate your current financial position and status.

–        Identify and agree where you aim to be at certain points in future and what will be financially required then.

–        How to do what is necessary to get there within certain parameters (such as relationship, health, legal), your investment profile and investment timeline.

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