By Peter C. Karp
If you’re like me, retirement was the last thing on your mind when you graduated college. You had plenty of time for that “later.” Today is that later, and with pension plans disappearing and life expectancies increasing, now is a good time to take inventory of your retirement. Are you on track to reach your income goals? How much money do you need to supplement social security?
Planning for retirement can be an overwhelming task even for those with the best of intentions. It is especially daunting for individuals who are part of the sandwich generation. The term is directed at folks who find themselves caring simultaneously for their children and their aging parents. The focus should be paying yourself first as you look toward transitioning into retirement. In addition, a few guiding principles can help you reach your goals: Paying down debt is paramount. Live below your means if possible. It is important to be realistic about how much money you will need to fuel the retirement lifestyle you envision, and to continually rebalance your portfolio as you move toward retirement.
By Peter C. Karp
The first step in successfully reaching a goal is to state it properly. The better you state the goal, the easier it is to create the action plan. We help clients organize and prioritize their goals for execution. While this sounds easy, it is not. This is why some of the most successful people in business and sports have a mentor or coach. People have good intentions but few reach their goals on their own. Here are the criteria to setting and reaching financial goals:
Specifics - You say exactly what it is you want to do. A common goal for many of our clients is given their spending level how much do they need to save to be sure they have enough money in retirement. They are seeing that their friends are living longer and afraid they will not be able to cover all the expenditures in retirement, i.e.: healthcare costs, life style, helping kids and grand children. They have never had to abide by a budget and they do not want to start in retirement. Hazy goals are doomed to failure.
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