By Frank Legan
Your retirement plan should be as unique as you are, not a standard template used by everyone.
The truth is that there’s scarcely ever a one-size-fits-all benchmark that applies to everyone’s retirement goal. The financial indexes you see in our increasingly accessible online news sources aren’t applicable to everyone. Remember, those indexes are purely data-based and don’t have feelings and families or pay taxes like people do.
To prevent a reliance on benchmarks, I compiled some recommendations to help you focus on your personal financial situation instead of generic retirement models.
Identify Your Unique Retirement Goals
Your starting point should be understanding how much you’ll need to pull from your investments/savings on a monthly basis. The amount you decide on should be directly tied to the type of lifestyle you want to live during your retirement years.
Next, decide when you want to retire. That timeline determines how many years you expect to rely on an income source you create. For example, will that income come from Social Security benefits, a pension, 401(k), Roth IRA, or some other source? And in what order?
Don’t forget about family and health considerations. They should be factored into your evolving retirement plan.
All these personal decisions lay the foundation for your unique retirement plan.
Don’t Get Distracted
It’s so easy to be led astray by today’s constant influx of irrelevant information. Imagine trying to research retirement financial information online without getting sucked down a rabbit hole. It’s nearly impossible, right?
Instead of getting irretrievably sidetracked, try to remember that the only investment performance you need to watch is how you’re doing in relation to your own personal retirement goals and timeline.
For example, there’s really no point in checking your progress against an index or some random person’s portfolio results. Your investment strategy is 100% based on your past, present, and future life—no one else’s.
Stay Focused on Your Outcome
Mixed messages on social media, email scams, website popups, and news sources are just a few of the many distractions that can lead you astray. Now add in the inherently volatile nature of investment data and you have a recipe for constant disruption, making it way too easy to lose sight of your goal.
Here are some ideas for keeping your eyes on the prize:
- Regular reviews: Be diligent about scheduling time to regularly check your progress; make necessary adjustments and stay on track.
- Automated savings: To ensure you’re consistently saving, set up automatic deductions from your paycheck to your retirement savings account.
- Vision board: Make a visual representation of your retirement goals. Put your vision board somewhere you’ll see it often.
- Remember your “why”: To help you stay focused, remind yourself of the reasons you want to retire in the first place.
- Celebrate milestones: Take time to praise yourself for reaching milestone goals, even if they’re small compared to your big-picture goal.
- Be patient: Like any goal, realizing your retirement dreams takes time. Stay persistent even when life throws you a curveball or two.
The Bottom Line
Your individual financial plan for pursuing your own retirement goals is the only benchmark you need. The internet will throw lots of distractions your way, but try to ignore them and stay focused on your own path.
If you start measuring your goals against online indexes or other people’s retirement plans, you run the risk of losing sight of your own big picture.
Get a Customized Financial Plan
At Cedar Brook Group, we understand that the human factor plays a pivotal role in all financial planning. We make a point of understanding who you are before we start advising you on how to move forward. There’s not a one-size-fits-all financial solution for every client. We get that.
If you’re ready to work on a personalized plan, reach out to us at 440-683-9213 or flegan@cedarbrookfinancial.com or schedule a complimentary introductory call online! Let’s work together to customize a plan that’s just right for your circumstances.
About Frank
Frank Legan is Partner, Financial Advisor, and member of the Forward Look Committee at Cedar Brook Group, one of the largest independent wealth management firms in Northeast Ohio. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, closely held business owners, artists, families, and retirees. He focuses on lifetime income strategies, investment advice, and estate planning services. He also works with businesses to develop strategic and succession planning strategies. Frank has a Bachelor of Arts in Political Science from the University of Dayton, as well as a Master of Public Administration focused on municipal management from Cleveland State University. Prior to joining Cedar Brook Group, Frank was a financial advisor in the private client group at Merrill Lynch and with NatCity/PNC Investments. Frank is active in his community, serving on various councils, boards, and committees. Frank serves as Chairman Emeritus of the Board of Directors for Catholic Charities Diocese of Cleveland. When he’s not working, you can find Frank spending time with his wife, Laura, their daughter, Reese, and their beloved collie, Charlie. Frank and his family are volunteers at St. Francis of Assisi church in Gates Mills. To learn more about Frank, connect with him on LinkedIn.
