7 Steps to Successful Financial Planning for Retirement

Planning for retirement is a crucial step for your future financial well-being. Without a solid plan, you might find yourself unprepared for your golden years, potentially facing financial stress or having to adjust your lifestyle unexpectedly. Many people approach retirement age only to realize they haven’t saved enough or haven’t considered all their needs. With proper planning, though, you can set yourself up for a comfortable retirement. By following these seven steps and working with a financial advisor, you can create a robust plan that helps secure your financial future and allows you to look forward to retirement with confidence.

1. Vision
When you first meet your financial advisor, they’ll help you define your retirement vision. This isn’t just about money - it’s about how you want to spend your golden years. Do you dream of traveling the world? Starting a new hobby? Or simply enjoying time with family? A good advisor will ask questions to uncover what truly matters to you. Be honest and thorough in your responses. The clearer your vision, the better your advisor can help you achieve it. This step sets the foundation for your entire retirement plan.

2. Blueprint
Next, open up to your advisor about your values and retirement dreams. They’ll study your current finances in detail, looking at your income, expenses, assets, and debts. But more than just numbers, they want to understand your relationship with money. Are you a cautious saver or do you enjoy spending? What are your financial concerns about retirement? Share your thoughts openly. Your advisor should use this information to create a blueprint tailored just for your retirement needs. Think of this blueprint as a first draft of your financial future that you’ll refine together.

3. Strategy
Using your personalized blueprint, your advisor will craft a retirement strategy. They’ll consider various approaches to help you reach your goals, taking into account factors like your risk tolerance, time until retirement, and personal preferences. A good strategy will map out how to turn your retirement goals into reality, covering areas like investing for growth, creating retirement income streams, managing risks, and planning for healthcare costs. Your advisor should explain their reasoning clearly, helping you understand how each part of the strategy supports your overall retirement vision.

4. Plan
This is where your retirement plan starts to take shape. Your advisor will present their findings and suggestions, showing you a clear path toward your ideal retirement. They might use charts or projections to illustrate different scenarios. Feel free to ask questions and give feedback—it’s your retirement, after all. Together, you can review your current financial state and test different scenarios. What if you retire earlier? What if you downsize your home? Your advisor can show you how these changes might affect your future. This back-and-forth helps refine the plan until it feels right for you.

5. Action
Once you and your advisor agree on the plan, it’s time to put it into action. Your advisor will guide you through the necessary steps, which might include adjusting  your investment portfolio, optimizing retirement account contributions, or updating your insurance coverage. Remember, they can’t do it all for you. You’ll need to take action, too, like following through on savings commitments or making lifestyle changes. Stay motivated by keeping your retirement dreams in mind. Your advisor can help break down big tasks into manageable steps, making it easier to stay on track.

6. Progress
Staying engaged with your retirement plan is crucial for success. Meet with your advisor at least once a year to check your progress. These check-ins are your chance to see how you’re doing and make any necessary adjustments. Be sure to tell your advisor about any significant life changes, like health issues or changes in your retirement timeline. These events can have a big impact on your financial picture. Initial enrollment in Medicare, for example, involves making complex decisions that will have long-lasting impacts. Your advisor will use their expertise to ensure you’re still on track to meet your retirement goals, suggesting tweaks to your plan if needed.

7. Updates
Good communication with your advisor is key to long-term retirement success. Schedule regular in-depth reviews of your plan - these might be more frequent as you get closer to retirement. Life is full of changes, and your retirement plan should evolve with you. If your goals shift, your financial situation changes, or you face unexpected challenges, speak up. Your advisor can then adjust your plan to fit your new circumstances. This flexibility is what makes a good retirement plan work for the long haul. Remember, retirement planning is an ongoing process, not a one- time event.

By working closely with a financial advisor through these seven steps, you’ll create a strong, flexible retirement plan that can weather life’s ups and downs. Remember, your advisor is there to guide you with their knowledge and experience, but your input and commitment are crucial for success. With a solid plan in place, you can enter your retirement years with confidence, knowing you’re on the path to achieving your financial dreams and hopefully enjoying the retirement lifestyle you’ve always wanted.

JL Bainbridge is an independent Sarasota-based family wealth management firm. For 43 years, they have been helping clients manage and control their financial well-being before and throughout retirement.

To learn more about JL Bainbridge, call (941) 356-3435 or visit jlbainbridge.com. You can also download a printable PDF of JL Bainbridge’s yourFuture sm Financial Planning Process at jlbainbridge.com/yourfuture.

Disclosure: This information is for educational and informative purposes and should not be considered a recommendation. Investment advisory services are only available to those who become our clients through a written agreement. J.L. Bainbridge & Co., Inc., (JL Bainbridge) is a registered investment adviser. JL Bainbridge is not a broker dealer and does not offer tax or legal advice. Please consult your tax or legal advisor for assistance regarding your individual situation. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future performance. For more information on our firm and our investment advisor representatives, please review our Form ADV, Privacy Notice, and Form CRS at jlbainbridge.com and reference the SEC website for more information on the firm and its advisors: https://adviserinfo.sec.gov/firm/summary/108058. Identifying the SEC as our regulator does not imply any level of skill or training.    [AD24]