Clarify Your Retirement Goals with These 4 Questions
Before you get wrapped up thinking about savings, income and taxes, you need to think a little harder about what you really want from your retirement. Setting some life goals will give you and your financial planner a clear direction.
What’s important to you about money?
I ask clients and potential clients this question all the time, and I’ve learned — after having had thousands of these conversations — that few people give the topic much thought.
That’s unfortunate, because the answer — or answers — will help you focus on what matters to you most.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Investors (and many financial professionals) tend to put all the emphasis on growing their nest eggs for retirement and not focusing on whether the money you amass while you’re working will last after you’ve retired. But there’s so much more to a comprehensive financial plan than just the beginning and the end.
You should be using your money as a tool to achieve your goals. And your adviser can’t help you reach those goals if you don’t even know what they are, or if you can’t articulate them, when you’re discussing retirement strategies.
Here are some questions to help you get started. (If you’re married, be sure to include your spouse.)
Who do you want to help with your money?
Answering “myself” or “ourselves” is a perfectly acceptable answer. But if you have others you want to include — parents or children or anyone else you’ll need or want to take care of — be specific about what you’d like to be able to do for them. You could and should be exploring how you’ll cover those costs now and in the future.
Do you have any specific “bucket list” items you wish to achieve?
Have you and your spouse dreamed of traveling, moving or changing your lifestyle in any way? When do you want those things to happen? Have you considered and included the costs of these activities in your financial plan?
You can’t take it with you, so do you want to live large or leave some behind?
Is it OK to spend every penny you have during your lifetime, so that the last payment to the funeral home barely clears, or does leaving a financial legacy matter to you? Which people or organizations should receive your money? Your adviser can help you set up a course of action (a will, a trust, life insurance, etc.) to help you achieve your legacy goals in the most tax-efficient manner possible.
What would happen if you or your spouse became sick or disabled?
Have you talked about what kind of care you’d prefer if it’s required (e.g., skilled care in your home, adult day care, an assisted living facility)? How would you pay for care, and how would your choices affect your loved ones in the short and long term?
Money is a very personal topic, and sharing your thoughts on these issues can be uncomfortable — particularly if you and your spouse disagree on your various goals. But if you’ve never thought about your money in this way before, this can be a powerful and revealing exercise. Complete it thoughtfully, and discuss your options with the people affected.
Then you’ll be ready to build a truly comprehensive financial plan.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Les Goldstein is the founder and president of Personal Financial Strategies Inc., a branch office of Securities America Inc., member FINRA/SIPC. Personal Financial Strategies and Securities America are separate entities. As an Investment Adviser Representative with Securities America Advisors Inc. in the greater Chicago area, he helps clients create a retirement lifestyle for themselves and leave a meaningful financial legacy for their loved ones.
-
Stock Market Today: Stocks Rise on Strong September Retail Sales
Taiwan Semiconductor Manufacturing's earnings beat and solid outlook created tailwinds for several chip stocks.
By Karee Venema Published
-
Election Updates: What Candidates Are Saying About Your Money
The latest election updates on what candidates are saying as it concerns people's finances, along with commentary and analysis from Kiplinger experts.
By Alexandra Svokos Last updated
-
Five Ways to Minimize a Higher Capital Gains Tax Rate
With Harris’ proposal to raise the capital gains tax rate (which would require congressional approval), investors might want to consider tax-lowering options.
By Michael Aloi, CFP® Published
-
Collar Investing Strategy Can Help Protect Your Nest Egg
Here are some key considerations for using the collar strategy of put options and covered calls to safeguard your wealth in retirement.
By Matt Amberson Published
-
Understand Your ESOP Benefit: The Diversification Option
You can sell your shares back to the company during your employment years, called diversification in ESOP terms. What are the pros and cons?
By Peter Newman, CFA Published
-
Women's Wealth Growing: How to Handle It Like a Pro
Even as women play catch-up because of the gender pay gap and caregiving responsibilities, they're winning financially.
By Tiffany Welka Published
-
Electing to Be an S Corporation: Benefits You Need to Know
Entrepreneurs who meet the requirements and choose to be an S corporation could see lower taxes and experience several other advantages.
By Derek A. Miser, Investment Adviser Published
-
Tips for Honing Your Bond Investing Strategy
Building a good, high-quality foundation is critical when selecting a mix of bond funds that match your risk tolerance and return objectives.
By Brandon Zureick, CFA® Published
-
How to Spot a Contractor Who's Not Playing by the Rules
Being a general contractor is not a game, yet some misrepresent what they're licensed to do. Here's a cautionary tale, plus some signs to watch for that something's off.
By H. Dennis Beaver, Esq. Published
-
How to Rank Your Financial Priorities
Circumstances are different for everyone, but this adviser with 20-plus years of experience shares some insights on getting your financial priorities in order.
By Andrew Rosen, CFP®, CEP Published