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One could come up with numerous “most important” pieces of information necessary to begin the retirement planning process. All of these “most important” pieces of information are not really that important if not placed in the proper context, are not understood, and are not properly utilized.
Having an optimized, well thought out, and time organized RETIREMENT PLAN is not only critically important, it is crucial for success. This is the place where one starts.
If you depart on trip having no agenda, map, compass, or cell phone, what are your chances of successfully getting to a desired destination?
Your PLAN is the map that will take you to your destination in the most direct and timely fashion.
In the field of financial planning, an Investment Policy covers goals, risks, asset allocation, strategic location of assets, and a method of periodic review. An Investment Policy is a very important and necessary part of the financial planning process. But, I am not speaking here about a financial plan, but a Retirement Plan which considers all phases of ENOUGH.
One of the most critical initial concepts that a person must understand about long range retirement planning (and what makes the process much more difficult) is that:
Present You is forced to prepare socially, financially, and spiritually for a stranger that you don’t know, and possibly don’t currently care about!
It means giving up present dollars, time, and effort for this stranger. But, the stranger you don’t know or understand is Future You.
And, all of this is dependent on Present You being able to carve out (think- give up) a portion of present needs, wants, and wishes and donate these to benefit the stranger that is Future You.
You don’t know or understand Future You but you are supposed to prepare for Future You to live in your house, wear your clothes, and spend all your hard earned money at some unknown future date.
Any truly compassionate person would provide for a stranger in need. This stranger in need is Future You. How well you prepare for Future You will determine how well Present You will eventually live as you become Future You. The stranger is really “The Man in the Mirror.”
Does this mean that you can spend thirty minutes or an hour thinking of things Future You needs or wants and that this thirty minute session will become your PLAN?
Sorry! NO!
Your plan MUST:
*Be Written.
*Be Specific.
*Create strong reasons.
*Be Thorough.
*Provide a pathway to action.
*Manage, adjust, and track progress.
In my next blog we’ll start to put together an actual Written Plan. Stick around. Future You will be happy! This may look complex. But, remember, the goal of this blog is not to enhance complexity, but to simplify complex subjects and processes.
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