A majority of people work diligently—and need to work diligently—to secure a retirement plan that will be able to carry them through to their goals. But just what are those goals? Essential to any successful retirement plan is an active understanding of what you want out of your retirement—and what you want out of life. Chasing after a retirement plan that resembles what most people do, but which may not match your needs at the current time can create problems for you.
In this way, I want to suggest that your priorities play a big part of your planning in 2016. For all of us, having a comfortable retirement is a basic priority, which of course means saving in more or less traditional ways. But over and above this basic need, a plan that truly reflects your priorities will likely mean being open to certain non-traditional choices in the planning process: choices that follow your priorities.
Following your retirement priorities could mean taking into account your or a sick family member’s health when it comes to deciding when to retire—even if that means retiring ahead of schedule.
Following your retirement priorities could mean making a big purchase for the family, like a house remodel or taking a special vacation, even though it means you’ll put away less this year toward your 401(k).
When your priority is the well-being of your loved ones, certain compromises between your ideal retirement and your real life will have to happen. Nobody is perfect, and no retirement plan is unchangeable. In fact, the best retirement plan will be the one that allows for flexibility when you need it most.
Think carefully about your priorities for the next year. Do your goals pose any possible conflicts with the retirement plan you feel you “should have?” As a retirement planner who works with real people, I’ve developed an appreciation for allowing priorities to shine through in the individual retirement plans I construct with my clients. While you’re saving for retirement, and especially once you’ve retired, you need to be able to live your life. At Miramontes Capital, we work to defend the quality of life of clients at all stages of the planning process. We encourage clients to work and save hard, we work together with understanding when unexpected priorities come up, and above all, we respect the individuality of our clients. Best of luck with your retirement priorities in 2016.