When it comes to retirement planning, most of the emphasis is placed on accumulating the largest retirement portfolio possible.
That is certainly important – in fact it’s probably the foundation of all good retirement planning.
However there’s a lot more involved in retirement planning.
I’ve put together a master retirement plan, that includes ten individual sub-plans, all of which will have a major impact on your life in retirement.
The idea is to look beyond simply building a big enough retirement portfolio, and focusing on the many other factors that will affect your life – and your finances – once you retire.
By knowing what these factors are, you can develop plans for each of them. And when retirement does come, you’ll be ready no matter what happens.
1. Plan for Decades – Not Years!
When planning for retirement it’s important to look beyond the first few years. People are now living for decades after retiring, and you’ll need to be prepared to cover that extended time span.
For example, if you plan to retire at age 65, you should plan to be able to support yourself for at least another 20 years – people living to be 85 is no longer uncommon. In since women generally live longer than men, you might want to consider planning out through age 95. That’s 30 years!
Even if you don’t think you will live that long, maybe because people in your family historically haven’t, you must still be financially prepared for the possibility.
From an investment standpoint, that means you will need to continue to have some emphasis on growth in your portfolio. That will enable you to make sure the assets you have in your 60’s will last well into your 80’s.