I’m a Financial Planner: This Is My 6-Step Retirement Plan

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Creating a solid retirement plan is much like planning a road trip — without a clear destination and a map to guide you, it’s easy to get lost.

As a financial planner, I’ve helped many clients navigate their journey toward retirement, and I’ve found that a structured approach makes all the difference. Today, I want to walk you through my six-step retirement planning process.

Step 1: Define Your Goals

Before we can map out your retirement journey, we need to know where you want to go. Defining your retirement goals is the critical first step because it sets the direction for the entire plan.

I often ask my clients to take some time to envision their retirement. Do you see yourself traveling the world, buying a vacation home or perhaps taking up a new job that you’re passionate about? Maybe your vision is more about enjoying a quiet lifestyle, spending time with grandchildren or exploring hobbies you’ve never had time for.

This step is all about introspection. Without clear goals, it’s hard to measure success or even know what you’re planning for. Once you have a clear vision, we can start to build a plan that aligns with your aspirations.

Step 2: Gather the Data

Once your goals are defined, the next step is gathering all the financial data. This is where we start to lay the groundwork for your retirement plan.

You’ll need to pull together your financial statements, bank records, retirement account statements, employee benefits, Social Security projections, income and debt information, investment assets, personal assets and a detailed budget.

I won’t sugarcoat it — this step can be cumbersome. But it’s also crucial. The more data we have, the fewer assumptions we need to make, which means we can create a more accurate and personalized plan.

Think of it like building a house: the more detailed the blueprints, the sturdier the final structure will be.

Step 3: Develop the Plan

With your goals in place and data in hand, it’s time to develop the retirement plan. This is where the real financial planning work begins.

Using the information we’ve gathered, I’ll design a plan tailored to your unique situation and goals. We’ll often test multiple strategies to find the optimal one, using tools like financial calculators, Monte Carlo simulations and sophisticated financial planning software.

Developing the plan can take some time because it’s important to get it right. We might need to go back and tweak things, test different scenarios and explore various options before we land on the strategy that works best for you.

Step 4: Present the Plan

Once the plan is developed, it’s time to present it. This can happen in person or over Zoom, depending on what’s most convenient for you. During this step, I’ll walk you through the plan, explaining how it’s designed to help you reach your retirement goals.

I believe in providing more than one option whenever possible. This way, you can see the different paths available and choose the one that best fits your needs and comfort level. The goal is for you to walk away with a clear understanding of how you can achieve a successful retirement.

Step 5: Implement the Plan

If there’s one thing I can’t stress enough, it’s the importance of implementing the plan. A beautifully designed retirement plan is worthless if it just sits in a drawer or on your computer. This step is where the rubber meets the road.

Implementation often involves several actions, such as increasing contributions to your 401(k), reducing debt, adjusting your investment allocations, deciding on a pension buyout, determining when to take Social Security and figuring out how much income you’ll need to comfortably retire.

It’s a process that requires multiple steps, meetings and follow-ups, but it’s absolutely essential to turning your retirement dreams into reality.

Step 6: Monitor the Plan

Retirement planning isn’t a one-and-done deal. Life changes, and so should your plan. Whether it’s the birth of another child, a job promotion, a market downturn or an unexpected job loss, your retirement plan needs to be flexible enough to adapt to these changes.

As your financial planner, I’ll regularly monitor your progress and update the plan as needed. Typically, I’ll rerun the plan every couple of years, but I’m always on the lookout for life events that might necessitate an update.

I often compare this step to using a GPS — when you hit a detour, it’s worth recalculating the route to see if there’s a better way to get to your destination.

Retirement planning is a journey that requires careful thought, ongoing effort and the right guidance. By following these six steps, you can create a roadmap to a successful and fulfilling retirement.

Whether your destination is a quiet lifestyle or a life full of adventure, the key is to start planning now and keep adjusting as you go.

Editor’s note: The author, Connor Bauserman, is a senior financial advisor with Harbour Investments Inc. This article is for informational purposes only and not full financial advice. Consult with a qualified financial professional for personalized guidance.

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