People are living longer, healthier lives.
Retirement plans shouldn’t be about retiring.
They should be about living.

A Retirement Plan Is Not a Financial Plan

A financial plan takes a detailed look at a personal or family situation with respect to money and finances. It assesses both the wealth accumulation (saving and investing) and the decumulation phase (spending to support lifestyle), and through a series of projections generates a range of potential outcomes. These outcomes are intended to help answer questions like, "How much I can I afford to spend in retirement?" or "When will I be able to successfully retire?"

By itself, a financial plan is just a series of projections and numbers without context. It's your individual goals that bring things into sharper focus. What do you want to spend your money on? How do you envision your retirement? Evaluating your ability to achieve those goals is a big part of a comprehensive retirement plan.

Financial plans coupled with a retirement plan based around setting specific goals will include estimating the amount of money you might need and determining the most appropriate strategy to grow or protect your existing investment assets.

These days, retirement is so much more than simply "not working". People are living longer, creating demands for planning that lasts 10, 20 or even 30 years. Understanding goals and objectives is an important part to making sure people plan for and lead fulfilling retirements. Remember the old chestnut, "People don't plan to fail, they fail to plan.”? If you don't know where you are going, how do you expect to get there?

We believe that retirement planning begins at goal setting. Once goals have been determined, they are integrated with your financial information to create a financial plan. Then an investment strategy is developed and presented to you in a written and easy-to-read Investment Policy Statement, an important document that outlines the recommended portfolio strategy.

No plan is ever complete. Each step is reviewed on a regular basis, ensuring all aspects are working towards achieving your goals and objectives.

Setting “SMART” Goals

Goals that are S.M.A.R.T. (i.e., Specific, Measurable, Actionable, Realistic, Timely) have a higher chance of being achieved, but allow yourself to dream a little. Don't limit yourself at this stage. The financial planning process is when goals can be tested against financial assets to determine their reasonableness.

To help you get started, we've created work sheets that guide you through this process. As well, we've included sample answers to the same questions, so you can see the level of depth and detail that goes into creating a workable plan.

The exercise isn't complicated, but that doesn't mean it is easy. It forces you to think—without worrying about money for the moment—about the type of life you want to live in retirement. There are no wrong answers. If you have a spouse, we strongly recommend that you complete the information separately, which reduces or eliminates pressure to answer questions the same way. Often, we find that one spouse defers to the other spouse and does not think critically about the questions below.

• What are you looking forward to in retirement?

• Is there anything about retirement that causes you stress or anxiety?

• What will you miss when you retire?

• Do you intend on working part-time? Volunteering?

• What short-term goals (less than five years) would you like to accomplish?

• What long-term goals (more than five years) would you like to accomplish?

• Is there anything you have been putting off that you really want to do?

• Describe your perfect day.

take it slow

Younger people might struggle with this, but I recommend you take time to write things down. If you want to go old school and use a pencil and paper, go for it! Don't worry about structure or grammar. What's important is your thoughts are captured. Also, don't worry about finishing it in one sitting. Take as much time as you need.

Many find it helpful to work with a professional to help guide them. For more complex planning needs, we will work closely with someone in your network, or we can introduce one of our highly trained professionals from our affiliate Raymond James Financial Planning. Working together, we can show how your retirement plans and financial plans come together, customizing an investment solution that is right for you and your family.

The opinions expressed are those of Craig Swistun and not necessarily those of Raymond James Investment Counsel which is a subsidiary of Raymond James Ltd. Statistics and factual data and other information presented are from sources believed to be reliable but their accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters.