Retirement planning goals are often decided in a vacuum, without proper consideration of both known and unknown life transitions and in isolation from influences that might impact your retirement plan. This approach can mean that if events do not go according to plan, your retirement will be compromised and you could be denying yourself the opportunities that come with some planning and foresight.
“The retirement planning process should not be completed in a vacuum and should look forward into your future and consider what life events will happen and what might happen”
In my experience, this is the most important and dynamic part of the retirement planning process. Each life event will have an impact on your retirement goals and trade off’s are often required. Each year, at Longwave Wealth, we review your life events and reevaluate their importance, as your thoughts and circumstances change. This constant review helps you to always to be prepared for the unexpected.
At Longwave Wealth we believe every person CAN have a happy, healthy and purposeful retirement, by preparing a Financial Lifeline as part of their retirement planning process for the following reasons:
We all like to think that life will proceed in a perfectly straight line. However, this is rarely the case. Retirement goals require careful thought and consideration of many ‘what if’ scenarios. The creation of your ‘Financial Lifeline’ extending out to 20 to 40 years, will help you refine and expand your retirement goals.
Does your current retirement plan cease at the age of 65 – the mythical retirement age? There is life after 65 and you need to make sure you have a plan extending beyond the age of 65 so that you are prepared and also make the most of your opportunities.
Non-Financial Retirement Goals
By planning ahead of time and exploring what is possible, you can start to implement plans to achieve what you may have not thought possible. For example, your 10-year goal may be to complete a new degree and fund the cost. By simply putting this goal on your Financial Lifeline, you can develop an action plan to complete this goal.
Transition to Retirement
We have a tendency to adapt our lifestyle to the income we have to spend. Having an understanding that we need to plan for the next 20 to 30 years and for many different events, can assist in reviewing these lifestyle costs and turning our attention to aligning our spending and retirement goals with our values and purpose.
Retirement Planning Transitions
Life is full of events and some are more certain than others! These known and unknown life events need to be considered, to reduce the potential impact on your retirement plan. The better you are prepared for a life event – mentally, physically and emotionally, the more financially secure will be your retirement plan.
Retirement Planning Strategies
The process of noting all the possible life events and possibilities on your Financial Lifeline will assist you in seeing the impact of one life event will have on another and assist in the choice of appropriate retirement planning strategies for your circumstances. As your Financial Lifeline is reviewed and updated, the retirement planning strategies chosen to help you achieve your retirement goals can also be updated.
Retirement Review and Update
The preparation of your ‘Financial Lifeline’ will assist in the regular review and update of your retirement plan as your life, the circumstances of those around you and also related legislation change. The constant review and update assists in making sure you are using the appropriate strategies available for your circumstances, retirement phase and legislation.
As part of our 7 steps retirement planning process, we prepare a timeline stretching out for 20 to 40 years and consider 6 key life events some of which are known and others unknown, which may impact your retirement plan. We call this timeline your Financial Lifeline and is a feature of our ongoing review process to make sure you thrive and not just survive in retirement.
To download the ultimate guide to preparing your own Financial Lifeline, please click on the link below or alternatively, contact us if you would like assistance in preparing your Financial Lifeline and retirement plan.
What life transition have you seen that someone what was not prepared for and what was the impact on their retirement plan?
General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.