Focus on Your Retirement "Vision"

Did you realize your retirement could last two, or even three, decades? To enjoy all those years to the fullest, you will need to create a vision of your retirement lifestyle — and then develop a plan to turn that vision into reality.

To articulate and achieve your vision, ask yourself some questions:

• What do I want to do? When you retire, do you plan on traveling around the world? Purchasing a vacation home? Pursuing your hobbies? Clearly, you have many options — and you’ll need to be aware that some choices are going to be more costly than others. If you can identify how you want to spend your retirement years and then put a “price tag” on your goal — or at least develop an estimate of how much money you’ll need each year — you can then create an appropriate investment strategy.
• What “roadblocks” might I encounter? As you work to achieve your retirement vision, you may encounter some roadblocks along the way. One significant roadblock is the amount of health care expenses you might face during retirement. Since these costs typically rise as you move further into retirement, you’ll need a reasonable portion of your assets to be allocated to investments with the potential for rising income.
• How can I protect my family? Your retirement vision can’t just involve yourself, or even just yourself and your spouse. To fully enjoy your retirement years, you’ll want to know that you are helping to protect your grown children from financial and emotional burdens that could fall on them should you become incapacitated. You may want to consult with an attorney to discuss any options that may be appropriate for your specific situation.