How to get clear on your financial vision

Clarify Your Retirement Motivation

Understanding your "why" is the cornerstone of your retirement planning journey. This isn't just about money; it's about envisioning the life you dream of living once you leave the corporate world behind. Whether it's traveling the globe, starting a new hobby, or spending more time with loved ones, knowing your "why" gives you a clear purpose and keeps you motivated.

Calculate Your Target Nest Egg Number

Once you're clear on your retirement vision, it's time to crunch some numbers. A popular formula to estimate your target savings is the 25x annual expenses rule. Simply multiply your annual expenses by 25 to get a ballpark figure of how much you need to save. For example, if you expect to need $40,000 per year in retirement, your target nest egg would be $1 million.

Assess Your Current Retirement Savings

Next, take stock of your current savings. This includes all retirement accounts like 401(k)s, IRAs, and any other investments earmarked for your future. Make a list of each account and its current balance. This step gives you a clear picture of where you stand today.

Find the Gap Between Target and Current Savings

Now, it's time to identify the gap between your target nest egg and your current savings. Subtract your current savings from your target number to find out how much more you need to save. This shortfall will be your financial goal to bridge over the coming years.

Make a Commitment to the Process

Retirement planning is a marathon, not a sprint. Dedicate yourself to this journey with a firm commitment. This means setting realistic goals, creating a savings plan, and staying disciplined. Remember, the road to a fulfilling retirement is paved with consistent, small steps taken over time.