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Understanding the Fundamentals of Successful Retirement Planning
April 7, 2022 at 5:00 AM
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For every American, retirement is a major life goal. For years, you work hard to build a life for yourself and your family. But when you’re ready to retire, you’ll likely want enough saved up to explore new parts of the world, enjoy the company of your partner and loved ones, or even purchase a vacation property.

This is where strategic retirement planning can help you prepare. Once you understand the fundamentals of a retirement plan, you’ll be able to establish goals and meet with an expert retirement advisor to make those goals a reality. Keep reading to learn more about how you can create a successful retirement plan.

What is Retirement Planning?

A retirement plan is exactly what it sounds like. It involves setting goals for your retirement income and putting together steps you can take to get there. You’ll identify sources of income, create a plan for savings, and calculate expenses for your everyday life, as well as for unforeseen events.

Essentially, a successful retirement means that you’ve planned well enough that you have financial security for your future, and that you’re able to live comfortably once you reach retirement age or no longer wish to work.

As you can imagine, it’s a little more complicated than simply setting a typical budget. When you prepare early (which we recommend), you’re planning for years in the future that will probably seem a long way off. But a strategic, effective retirement plan takes into account where you are now, where you want to be, and tracks your progress over time.

Benefits of Strategic Planning

A strategic retirement plan emphasizes both your short and long-term financial goals. If you’re hoping to spend extended periods traveling or have large purchases you want to make in life before you retire, a strategic retirement plan will help you identify what steps are needed. Additionally, strategic planning is meant to be flexible enough to accommodate unexpected circumstances without your finances and savings taking a big hit.

If you’d like to learn more about the benefits of a strategic retirement plan, get in touch with us at OWLFI.

Understanding The Three Phases

Each part of your life and career correlates with a different part of a retirement plan.

Phase 1

Phase one is often when you’re actively contributing to a 401(k), and/or starting an IRA or a Roth IRA. This period involves saving money, building an investment portfolio, and growing your career. This first phase is often the period when you’re younger and establishing yourself.

While there are a lot of advantages to starting your retirement planning when you’re still young (20s to late 30s), you may not always have as many funds to invest and save. However, if you can be proactive and start saving and planning earlier, the more returns you’re likely to see later.

Phase 2 (late 30s to early 50s)

The second phase of a retirement plan is the period in which you’re reaching the higher ranks of your career and earning potential. While you have a mortgage to pay off at this stage, you also have more funds available. Here, it’s wise to try maxing out your IRA contributions and 401(k)s. In phase 2, you should track your progress often to see where goals are being met, and what you should prioritize.

Phase 3 (50s to late 60s)

This is the last phase of retirement planning. Debts are likely to be paid off, and eventually, you’ll be drawing income from all of your savings and investments. During this phase, be mindful of your 401(k) and IRA. You’ll likely want to be planning budgets, trips, and bigger goals here.

Partner with the Experts at OWLFI For Effective Retirement Planning

At OWLFI, it’s our priority and goal to make your retirement aspirations a reality. With our extensive experience in retirement advising, together, we can create a retirement plan that’s designed specifically for you.

Contact us today at 913-441-8380 to get started.

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