New Year's Resolution: A Retirement Blueprint

The New Year is fast approaching. With the promise of a fresh start, Minnesotans will make the pledge that 2012 will be that year that they finally vow to accomplish the one thing that will make their lives better or more fulfilling. For most, a New Year’s resolution has a life expectancy shorter that my aunt’s home-made fudge at a Christmas party. Resolutions are often abandoned because they require a permanent commitment or lifestyle change.

A 2010 Wells Fargo Retirement Fitness survey disclosed that only one out of three Americans has a written, detailed plan for how they will manage their finances during retirement.  In another study, Ernst & Young (July 2008), finds that 60-percent of middle class retirees will outlive their financial assets if they don’t cut back on spending significantly in retirement.  These studies reveal that a well thought out financial plan will make a difference in your retirement - a good New Year’s resolution idea?  You bet.

Imagine walking into one of the ‘big box’ hardware stores (Menards, Home Depot or Lowes) to pick up all the necessary materials and tools to build a dream home. You would start in the lumber area, move to the electrical, then plumbing, hardware and cabinets - tossing aimlessly these materials into your shopping cart, hoping to get everything right.  If we shopped this way, I’m certain that most of us would be disappointed with the outcome of our final home.  Without a blueprint and a very detailed list, it would be impossible to get all the right products on our first shopping trip to the store.

Your financial house needs a blueprint as well. For many, as they get ready for retirement, they fail to put together a detailed plan of how they want their retirement to look.  They focus first on what products they should purchase and not on the preplanning needed to design a dream retirement and to build a solid financial house. 

Financial planning is not about the products and tools. Take the time in 2012 to imagine, dream and plan out specifically how you want your financial home to look when you’re in or near retirement. Once this is accomplished, you will find that the detailed list of what kinds of materials (mutual funds, stocks, bonds, REITS, CDs, annuities, etc.) can be implemented to build your financial structure. Let the plan determine which tools your unique financial home requires instead of the other way around.

If you don’t know how to begin a retirement plan, call the Secured Retirement Advisors office.  We wish you a successful and prosperous New Year.