The Importance of Planning for Retirement
Dino C. Gavanes, CIC
Village Trustee at Village of Itasca, Illinois: Financial Advisor with Equitable Advisors
Personal planning
Often people entering retirement do not put enough time into their personal planning to make sure they maximize all their opportunities. Take the time now-- at the early stage of your planning process to think logically about all the choices you have about how you'd like to spend your retirement.
Planning properly can allow for a calm retirement. Maybe take up that hobby you were always interested in, but never had the time to start? Go back to school and pick up a few special interest courses? Start your own business? Travel around the world? Buy property in a warmer climate and spend the winter months there?
These, and many other questions are what you should be focusing on when planning for retirement. It is crucial since your choices will drive the financial circumstances that must be met in order to achieve your goals.
Financial planning
You must start by asking yourself will you have the adequate amount of funding to provide for the retirement lifestyle you are envisioning for yourself? Your income will generally come from three sources: government pensions, employment-related sources and your own personal investments.
If your income is structured to fit your lifestyle choices it will allow for a more enjoyable retirement.
Steps for planning for retirement:
- Identify & compare your income and expenses.
- Review & analyze the various retirement income strategies.
- Review & compare the retirement income options available.
- Develop an action plan.