Bill Del-Sette’s Definition

In the following blog post, I’ll walk you through the first few steps in starting to plan for retirement.

Step 1: Determine Your Values Based Goals  “Dreams with a Deadline”

Values don’t change with life conditions, and they are the bedrock of a retirement plan.  A good exercise is to choose no more than four or five that matter most to you.  Click here to see a list of values you can use to plan your retirement goals around.   For instance, a value for you might be family, and a goal based on that value might be to spend 6 weeks a year with the grandkids at the beach house.

Step 2: Complete a Budget Worksheet to Determine How Much It Will Cost To Live Your Values.

The second step in retirement planning is to determine what the cost is to live out your values-based goals; we make this easy with our Retirement Planning Budget Worksheet, which has two columns.  The first column is for your current monthly budget, and the second for your alternative, or retirement monthly budget. What changes do you foresee once you start your retirement? Will your cost of living go up or down? Will the money you spend on childcare and supporting your children be allocated towards travel expenses? Use a budget worksheet to get a better understanding of what it will cost to meet your goals.

I should note that many people fail to consider the wealth eroding factors in their budget, and therefore underestimate its true cost. These factors will be the subject of future blog posts, but they include Inflation, Taxes, Planned Obsolescence and technological change.

Step 3:  Review Your Present Financial Position Where Are You Now And Will It Get You There?

Now we get into the math of financial and retirement planning.  This is simply a timeline of your income and expenses, including those wealth eroding factors. Many advisors use a tool called Monte Carlo simulation to determine your chances of meeting your goals.  Will your portfolio last throughout your financially independent years?

Step 4: Is It Doable? Determine What You Need To Change In Order To Achieve Your Goal.

If your retirement projection estimates that you will run out of money before your “good until” date, you might need to make some changes now.  Perhaps you will have to work longer, or spend less in retirement.  Maybe you have to change your investment portfolio.

If you plan on retiring at ag 65 and need $1,000,000, but haven’t started saving until your late 50’s, this can be a challenging task.  Looking at your retirement planning budget, our firm can make recommendations and changes so that you can hit your goals.

Step 5: Execute The Plan!

I’m a firm believer that hiring a retirement planning specialist or a financial advisor is one of the most important things you can do in life. It’s like having a gym coach, we know that if you want to lose weight you have to eat right and exercise properly, however, that’s easier said than done. Your gym coach will guide you through the fitness steps, push you to do better and help you obtain your goals. The same principle applies to retirement planning specialists and financial advisors. We keep an eye on your finances and if an adjustment needs to be made we are right there providing you with alterations and recommendations to keep your retirement on track.

Step 6:  Review and Course Correct At Least Annually

One of the main reasons why people fail to successfully plan for retirement is because their retirement plan isn’t updated. Your retirement plan can become outdated due to a number of reasons. Some of those can be, new tax laws being passed, getting married, divorce, sudden death, corporate layoffs, trust or wills being update. There is such a large number of issues that can hinder your retirement plan and this is why it is so important to revisit your plan at least once a year. Here at Del-Sette Capital Management, we try to meet with our clients often to make sure they are on track to a happy retirement and to update their retirement plan if needed.

Don’t Forget: Have an asset protection plan first!!

Having an asset protection plan in place BEFORE your retirement plan is critical.  You can go through all of the retirement planning steps and then lose everything you worked so hard for because you didn’t protect it.

Del-Sette Capital Management, LLC (“Del-Sette”) is a Registered Investment Advisor (“RIA”), Located in the State of New York. Del-Sette provides investment advisory and related services for clients nationally. Del-Sette will maintain all applicable registration and licenses as required by the various states in which Del-Sette conducts business, as applicable. Del-Sette renders individualized responses to persons in a particular state only after complying with all regulatory requirements, or pursuant to an applicable state exemption or exclusion.

Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like accounting, tax or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Del-Sette unless a client service agreement is in place.

Views and opinions are subject to change at any time based on market and other conditions.

If you have any questions regarding this blog post, please contact us at 518-793-3851

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