What does your ideal retirement look like, and how do you plan to spend your time? Would it include more travel? More time with your family? Perhaps enjoying the pastimes that work once forced you to put on hold?
We all have different visions of when we want to retire and what we want to do when we make the decision to fully retire. The question that many have not addressed is how they get from where they are today to a financially secure place that allows them to retire with a high degree of success.
Benjamin Frankin once said, “An investment in knowledge pays the best interest.” This quote serves as a powerful reminder that while learning takes time and sometimes money, the long-term “bill” for ignorance—poor decisions, missed opportunities, and, often, financial ruin—is far higher.
It’s easy to focus on today’s bills and forget about tomorrow or simply living for today at the expense of tomorrow. These habits may leave one in a tough spot down the road. For example, the average American has just $8,000 put away for the future—a tiny fraction of what’s actually needed. While Social Security helps, it just doesn’t stretch far enough to cover things like medical expenses and the general cost of living. Self-investment and financial literacy are key to shifting this national trajectory.
Tracking your spending for 30 days will help identify where your money goes, highlighting spending patterns and areas to cut back. Recording daily transactions helps identify, categorize, and control unnecessary spending to align with financial goals. From there you can create a realistic budget that will enable you to take control of your spending habits and help you make informed financial decisions.
Thousands of digital resources exist specifically to help individuals improve their financial literacy. Sites such as Investopedia.com and MyMoney.gov are great resources, and there is no cost to access them or use their resources.
Investing and building a retirement portfolio is a crucial part of financial planning, but it only addresses the accumulation phase. Estate planning is the necessary, often overlooked safeguard that ensures your assets are protected and distributed according to your wishes, rather than by a court, if you become incapacitated or pass away.
Many people avoid these discussions because they are uncomfortable, yet addressing these questions now is the only way to ensure your wishes are honored and your loved ones are protected during life’s most difficult moments.
In 2007, Sherri Goss, CFP, President of Lifespan Wealth Management, authored The Life Book—an invaluable resource for anyone seeking to organize their personal and financial affairs. This comprehensive guide helps users’ catalog everything from digital passwords and banking details to essential legal documents like Wills and Advance Directives. Beyond logistics, the book includes a dedicated section for capturing personal history or leaving meaningful messages for heirs. The Life Book is available as a complimentary download on the Lifespan website at www.retirerelax.com.
Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.
