Blueprints for Your Financial Future

If you have ever built a home, you know it’s not a quick or simple process. A careful, meticulous method must be followed to keep everyone involved on the same page and to make sure the home is structurally sound. However, there can be miscommunication between the homeowner, the architect, the contractor, the banker, and any other parties that are involved.

Communication can make or break the home-building experience. Throughout the project, one of the most important documents is the blueprint. This document contains every piece of information about the home’s appearance, its measurements, and its materials. The blueprint maintains consistency throughout each step. An improper house plan can result in very costly mistakes. 

Planning for your retirement is not all that different from building a house. Just like you wouldn’t begin the intricate project of building your dream home without first putting together a well-designed blueprint, you shouldn’t approach retirement without a well-structured financial plan. The preparation for this major life transition should begin many years before actually leaving the workplace. 

However, many people have a tendency to step into retirement with only a collection of “building materials” and no idea how to make them work together. Some may not even have enough “materials” (i.e. money) to complete the project. Perhaps they have a couple of 401(k)s, an IRA, some stocks they bought several years back, and a cautious optimism. When you are thinking about turning in your badge and leaving the office for the last time, here are a few things to consider to help make the transition smoother. 

Have a Solid Foundation

Similar to when building a home, the foundation is the most important step. Retirement planning’s foundation is your income. It is essential to know from where your income will come and to make sure you have enough resources to meet your needs for the length of your retirement. 

Retirement income sources commonly include Social Security, pension plans, rental properties, or other income-generating assets. It is necessary to know when each of these income sources will become available, how much it will produce, how long it will last, and how to cover any gaps. There could be a significant gap between how much income you will have and what costs will exist to cover your basic living expenses. Working with a professional can help eliminate discrepancies within your retirement plan.

Build By Design

While income is the central problem to solve, there is a long list of secondary considerations that need to be addressed. Just like there are as many home designs as there are homes, everyone’s retirement situation looks different. Though it doesn’t have to be, it can feel overwhelming to think about things such as debt, taxes, investment risks, or estate planning. 

The list of concerns is extensive. Taking time to think methodically about how to make your financial puzzle pieces fit together cohesively can save you from ending up with the wrong picture. The key to this is to start early, and then to know your goals and write them down. 

Don’t Do It Alone

Sometimes the thought of asking for help with your finances can leave you feeling vulnerable. It requires disclosing sensitive information such as how much you earn and how much you spend. Sometimes it uncovers some mistakes that have been made. But it can also uncover unknown opportunities.

The diffict thing about self-managing money is that many cannot separate their finances from their feelings. This makes it hard to think logically and practically about what makes sense. People remember the long hours it took to earn that money and the thought of spending it or putting it at risk can be a tough pill to swallow. This way you can enjoy the last chapter of your life instead of continuing to worry. After all, retirement should be a time to enjoy your freedom, your family, and your future.

Though not an easy task, finding and executing the right retirement plan can set you up for long-lasting peace of mind. There’s a wealth of expertise out there to help you secure your tomorrow by taking action today. ν

Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Consult a financial professional to discuss your personal situation.

Brandon Grable is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC, Member SIPC. 949 South Shady Grove Road, Suite 300, Memphis, TN 38120. 901.767.5951. CRN202703-6095987