The first step to take before deciding to retire is to identify your goals. Identifying your goals will help you determine what your target income ought to be in order to fulfill your objectives. Try breaking down your goals into needs, wants, and wishes and rank them according to importance. This way if you need to either eliminate or modify the timeline or certain goals, you have more control in the selection process. Next, quantify the value or identify the financial impact of the pursuit or the purchase. If travel during retirement is a passion, decide how many trips per year you’d like to take and average the cost per trip and total for the year. If you’d like to travel four times per year and anticipate spending $5,000 per trip, you can project on needing $20,000 per year for this endeavor. Meet with your financial advisor to help you with the process of identifying your goals, the financial criterion, and your capacity to accomplish these ideals according to your timeline.
Anthony Montenegro has been featured in: Forbes, The Huffington Post, CNBC, U.S. News and World Report, MSN Money, The Simple Dollar, Go Banking Rates and Yahoo Finance!