Financial planning for retirement is a several step process.

Step One: determine desired retirement age
Step Two: estimate the income need
Step Three: estimate value of your resources at retirement
Step Four: determine shortfall if any
Step Five: develop a plan
Step Six: invest accordingly
Step Seven: monitor your progress

These financial planning for retirement steps relate to the accumulation of assets. Proper planning also includes managing risks, such as death or disability.

Life insurance sufficient to replace lost income and fund your survivors’ current and future financial objectives is essential to the financial planning for retirement process. Insurance to replace income in the event of a disability is needed as well.

Simply put; financial planning for retirement means setting your goals, establishing a plan, and insuring against the unexpected.

Of course sound financial planning for retirement requires some effort.

For example; it’s imperative that you get a handle on where your money goes today. Which allows you to effectively estimate your cost of living at retirement. You do it by simply adding up the following:

• Mortgage or rent payment.

• Household maintenance such as lawn care, housekeeper, other regular maintenance.

• Auto expenses; gas, registration and repairs.

• Groceries, eating out.

• Clothing.

• Personal expenses. Hair and nails, etc.

• Healthcare. Costs not covered by Medicare, insurance, etc. I.e., your unreimbursed medical expenses.

• Recreation and education. Gym membership, yoga class, pottery class, etc.

• Charitable contributions.

• Property taxes and insurance.

• Miscellaneous expenses. Gifts, veterinary expenses, etc.

Financial planning for retirement, i.e., organizing your affairs today, with tomorrow in mind, is essential to your long-term financial success. And be sure to keep good records. Once you’re organized, financial planning can be a relatively pleasant experience.