Have you ever received bad directions?
You knew where you wanted to go, but you weren’t sure how to get there. So, being the thorough type, you type the address into your GPS and start on your journey. Things seem to be going well until your trip hits a snag. Your GPS wasn’t updated to compensate for traffic and construction along the planned route.
Planning for retirement can be like that sometimes. You know you want a successful retirement where you can live and give with confidence and peace of mind, but you’re not sure how to get there. You reach out to sources of financial advice (books, internet, coworkers, etc.) and start following the advice you receive.
Things seem to be ok, until you hit a snag – something comes up that you and the financial advice you received didn’t address.
So how do you know if you are on the right path to retirement?
Just like a road trip, there are signs and markers to help us determine if our strategy is going to help us reach our destination or if we’ll end up lost after making some wrong turns. YIKES!
Ask yourself these questions when determining if you’re heading in the right direction:
- Do I have a plan for claiming Social Security the best way for my situation?
- Do I have enough guaranteed income to last during retirement, no matter how long I live (and don’t forget about inflation)?
- Do I have a plan to address healthcare costs and Long Term Care?
- Will my current financial strategy work if tax rates change when taking Required Minimum Distributions (RMDs)?
- Do I have a plan in place that allows me to do the things I want AND leave a legacy to those I care for when I’m gone?