Planing their retirement has been interesting, because my day job is teaching financial advisor retirement plan. At this planning is done, and the end of my full-time job is on the horizon.

There are three things through my retirement planning process, and I’ve learned.

1. Planning is important – even if the future is not clear

I find that the establishment of a pension plan, we asked people the question is really difficult to answer. You can retire it? You will live? The work is part of the retirement of it? These are all the questions I have struggled, the answer is constantly changing. For me (probably for most busy workers), it is difficult to calculate a lot of this until you really need to retire a second time it enough attention. It must be

The decision addressing the early retirement date is selected. This one has retirement protection, it needs to be carefully considered so much influence. At the same time, you may look forward to retirement – I know me. I look forward to joining my spouse, who has been retired for several years, to try something new, different way of contribution to the world, but just have some unstructured time breathing during the day.

What I did, I would encourage you to do: Take your time, do not let short-term decisions reaction conditions, and carefully made the decision to retire before, to find finance.

So, how would you do, if you do not know exactlŸ know what you will do after retirement, but you need to answer these key questions, in order to complete the planning process? I’ve learned is that you do not need to plan the final answer – , you only need to start somewhere . If you are not sure, then make a guess.

A good start is to assume that your retirement will cost the same before retirement. An easy way to determine how much after-tax income, you need to look at the site is your take-home pay – for most people who live in this kind. Similarly, the choice of your meaningful retirement date, and start planning. You may find numbers of them does not work, you may need to adjust the plan, or you have to make adjustments and changes in circumstances.

Retirement income planning is rarely linear, there are always several adjustments on the road to progress.

2. What it means to risk entirely different retirement

When you retire, this relates to the forefront of the risk is that your resources will not last as long as your retirement yet. This means that decisions need to be at the forefront of this concern. One thing which means that most retirees, although they need to be considered safe investments, they still need to take some of their investment portfolio and investment risk. (A lot of research to see whether the resource will last more than 30 years of retirement period assume the configuration of at least a 50/50 stock / bond.) At the same time, look at your retirement portfolio rise and fall, when you can not use Longer salaried terrible .

One way to deal with is what is commonly referred to as the floor of Use – in such a safe investment or annuity product is used to establish a minimum income and other assets more aggressive investments to cover basic expenses, and portfolio withdrawals to meet the additional expenditure. This is what I’m doing. I am very comfortable in the risk of a portfolio, but I do not have to worry about the intention to pay bills at the end.

The simplest way, I use the building have a pension, social insurance and lifetime income annuity products, while maintaining a diversified portfolio consists of stocks.

3. His plan – by both sides of the brain

Joe Jordan, who talked a lot about behavioral finance, there is an important statement: retirement income plan has appeal to both sides of the brain. What he means is that it’s not only important that the digital work, but the plan has attracted the emotional side of the brain. I have accepted this approach in my own plan – I know I need to feel, I picked a good way – I put to sleep this night test.

Do not underestimate this idea, it’s not just numbers. Respect your sense of security (which involves a happy retirement) is an important number. I know enough about the numbers, know that there are many reasonable ways of working. The plan also means it has insisted it’s a better chance after retirement.

Conclusion

If there is a unifying theme, it all so pre-retirement planning is essential, but it should be personal. And it definitely is a journey, not a destination. So here we go. I’m ready to retire one stage, I look forward to reporting, we look at how it was.