Refer to this map of the United States…
What are the two things you need to know to find the location of the STAR?
- First you must determine where the STAR is located, as in Des Moines, or Oklahoma City.
- Once you have determined precisely what city you want to go, the second thing you should know is where YOU are on this map. Are you in Boston, or perhaps Seattle?
Once you know where you are and know where you are going, you can prepare to arrive on a timely basis.
Now answer a few questions to help yourself determine where you are on your “financial map,” so to speak.
- What is your definition of retirement? Does retirement mean quitting work at a certain age, or is it to continue to work in some capacity while having the money to travel? Maybe it means starting a new philanthropic venture, or having more time to spend with the kids and grandkids. Whatever “retirement” means to you, make sure you define it.
- At what age do you want to retire? Retirement doesn’t mean the age 65 necessarily. Some people don’t ever want to quit working but perhaps in “retirement” they want to scale back and maybe only work part-time. This means the age they quit working altogether might be 70 or even 80 but the age they “retire” and start working part-time while fulfilling other dreams is 60. Perhaps you want to quit working and travel the world at 50. Whatever your dreams, determine the age you want to make them happen.
- How much monthly income do you want at retirement? Most people assume 80 percent of their working-years’ income will be sufficient in retirement. You decide based on your health, dreams, and desires how much money you will need to do all the things you plan to do with your definition of what it means to retire.
- Do you have specific plans to be able to assure this income? Answering all the other questions will help you determine where your star is and where you are on the map in relation to that star. Answering this question will help you determine if you have a map to get there. It’s nice to know where you are, and it’s nice to know where you want to go, but if you don’t have a plan for getting there it’s not likely you’ll make much progress. Making specific plans ensures a greater likelihood of you arriving on time.
No one cares more about your life than you will. Why not sit down with yourself and determine when you want to retire and how much income you will need, and see how much progress you have made? If you don’t know how to save money to meet your retirement needs, go to www.moneymastery.com and click on the Retirement button. Fill out the retirement worksheet and find out where you are at financially. Then at least once a year, prepare this worksheet again and make sure you do whatever it takes to have money needed when you need it.
Don’t be like the Australian ostrich and put your head into the sand, this wouldn’t help. If you can not make progress with your retirement plan on your own, then I urge you to contact me now. I can consult with you at no cost on the next steps you should take and see whether one-on-one coaching would be right for you: peter@moneymastery.com.
