- Monevator - https://monevator.com -

How to create a simple retirement plan

There was a period in my life when I couldn’t bear to think about retirement planning. I didn’t know how to do it. I didn’t think I could afford it. I only knew the problem grew worse with every day I ignored it.

So I blanked it out. It was a big, self-inflating ball of worry but it was invisible. Like a personal climate change problem, I pretended everything was hunky-dory by shutting off the voices of doom in a soundproof part of my brain.

If only I knew how easy creating a workable retirement plan could be!

First things first: It’s vitally important to define your investment goals [1]. Without knowing your destination, you can’t work out how to get there.

A large-scale, life-altering project like investing for retirement may seem too abstract, distant, and difficult to deal with. Yet it can be done quite quickly by stringing together a few logical steps and employing a retirement calculator [2] to crunch the numbers.1 [3]

Creating your retirement plan

Before the calculators can whir, we need to sketch out our retirement vision and the key factors that will make it happen.

To make my retirement plan a little more tangible, I’ve taken to thinking of it as my very own financial farm:

Grow your own retirement. [5]

Over the rest of this Special Retirement Week On Monevator! I’ll look at how to turn the factors above into raw numbers that you can feed into a retirement calculator.

As we go, we’ll look at each issue in turn (and magically the four bullet points below will be updated with links, too):

Subscribe now [10] to get each new part emailed to you every morning.

Creating a retirement plan is worth the effort

Your investment goals face no bigger threat than the prospect of you giving up part way through.

By investing some time in your plan, before you invest any money, you will make your goals more tangible. You get a sense of what mission accomplished will look like, and can then draw a deep breath and take on the challenge.

After a while, you will savour your progress, relish defeating your demons, and turn a mental block into an empowering positive in your life. (Honestly!)

Take it steady,

The Accumulator

  1. Beware that results can differ depending on which calculator you use. Use them as a guide to planning only, always check the assumptions used by the calculator, and appreciate that reality could turn out very differently. [ [12]]