January 5, 2018 at 9:15 a.m.
Dream retirement column
My New Year Resolution - get financially organized! How? Doug, Mount Horeb WI
Whenever we do a workshop or talk about our DREAM Retirement Process, we have a quote we like to share. "A dream (insert new year resolution) without a plan is just a wish."
Our DREAM Retirement Process isn't for wishers; it's for planners! In reality, the four steps in the process can help in any area, not just retirement. So, to answer the how question and give you a framework for a plan, let's review the process.
First, what with what you want. This is more than just what but why. Why do you want to get financial organized? So you can retire with confidence? So you can better prepare for the future? So you can grow your business?? What do you want to do, who do you want to spend time with, how do you want to make an impact and what financially do you need to accomplish that. For example, if retiring is what you want, what income will you need to be able to do all you want.
Second, what do you have. This starts with a simple financial inventory and then goes deeper into an analysis of what you have. For example, it goes beyond the dollar amount in your retirement account to what the risk and expected return of the portfolio. If retiring is your goal, then calculating the income you will be receiving in retirement and how long that income will last is another deeper analysis you need to do. Maybe it is taxes or debt that needs a deeper dive.
Third, what do you need. Simply put, if what you have isn't going to get you what you want, then you need to look at what you need to make your wants a reality. Back to the retiring example, do you need a portfolio with less risk or more tools to provide more guaranteed income? Maybe you need a tool to help you stay organized and track your money. Maybe you need a plan to pay off debt or a tax and marketing plan to grow your business. Steps one and two will dictate step three.
Lastly, what to do. This may seem too simple, yet it is here that most resolutions fail and where most dreams turn into just wishes. You have to implement whatever you identified you need in step three; this is where the rubber meets the road. You should have action steps for immediately, 90 days and beyond. Your ability to do will turn your dreams and resolutions into reality!
For more information, to request a free copy of our book to read more about the DREAM process or to submit your questions, go to www.CreatingYourDreamRetirement.com
