Planning for the 21st Century Retirement

Vastly different than any other century, retirement is now a time of fun, travel, hobbies and life exploration.  The days of sitting at home ‘retired’ are long over.  Today’s financial cost is many times over what it was when your grandparents retired.

How do you ensure that you are not only able to afford to live, but you are able to sustain the lifestyle your desire in your retirement years? 

This question brings us to the first step.  Ask yourself (and spouse if applicable) what you wish to do in retirement and for how long.  This step is vital in planning for retirement because you need a clear picture of the finances you will need to have available in those ‘Golden Years.’

Do you wish that you will one day have the time and resources to research your ancestry?  How about intertwining it into a scrap-booking project that can be passed down to future generations?  Figure out how much it will cost (i.e. membership fees, supplies, maybe even travel to your family’s homeland).

How many times have you dreamed of traveling through Africa or Europe?  How about taking in a cruise or a mountain climbing adventure along the way?  You would need to consider and write down the costs of traveling, room & board, food, recreational spending, dance lessons, passport costs, language classes, climbing gear, etc.

Do you fantasize about playing golf full time in retirement?  Will you need professional lessons?  How about upgrading your golf clubs?  Do you want to join that fancy country club with the biggest green in town?  Analyze all associated costs for your needs and the number of years you plan to play.

If married, your spouse and you should sit down to discuss your goals as individuals and as a couple.  Work out an agreement plan of what you are going to put away to pursue your retirement goals.

Last, but not least, try to set up a retirement fund or some avenue of long-term savings that delivers interest.  It is recommended that you consult the advice of a professional before making any investment.