When creating a retirement plan, where do you start? And where are you headed? These seven simple steps will guide you through the process of building a retirement plan that works for you. This is part one of that series.
(Click the featured times below to jump forward in the episode)
The whole retirement planning process is about choosing a direction that’s right for you. And the best time to do so is today. Ask yourself, where am I now, where am I going, how fast can I get there, and how fast do I want to get there?
But how do you do that? This seven-step process will guide you through the retirement plan you can build on your own. On this episode of Cover Your Assets KC, we will cover steps one through four, but look for part two of this series for steps five through seven.
These steps aren’t too difficult, so don’t get overwhelmed. Start by building an annual statement of net worth and then think about where you want to be by a certain age and set up goals. Getting a high level view through an annual statement will help you track your progress. Then, consider how much you spend and where that money is spent each month. This is vital to building your net worth. Next, what are your financial goals? And then, how can you work to achieve them? Is debt standing in your way?
Before part 2 of this series, do an annual statement, set up a budget, and identify some goals to set you up for parts five through seven.
Listen to the full episode or click on the timestamps below for a certain step in the process.
[1:33] – Introducing this first part of a series covering the seven step retirement plan.
[1:55] – The four questions you need to ask yourself before starting the retirement plan.
[2:50] – Step 1: Create an annual statement of net worth so you can measure your progress.
[6:17] – Step 2: Know how much you spend and what you spend it on.
[7:55] – Step 3: Ask, “Where am I going?” and write down your financial goals.
[10:40] – Step 4: Live below your needs and eliminate bad debt.