Most people think of buying their home as the largest purchase of their lives. But I would like you to consider your retirement as the largest purchase you will make. Retirement costs money and you’ll need to save up to “buy” the retirement you want.  

There are parallels to a home purchase and funding your retirement. They both require a vision that determines how much it will cost and what you need to save to get there. When you buy a home, you’ll usually pinpoint what part of town you want to live in, square footage, number of bedrooms, what size lot, condo versus house, what type of quality and amenities, etc. This vision translates into a cost. And if you don’t have the savings or income to support it, something has to give. You’ll either have to adapt your vision by buying something less than what you’d like or begin saving more or waiting a bit longer to purchase your home.

You’ll have to make similar decisions about your retirement. At what age do you want to retire (the earlier the costlier)? What income would you like (about the same as your working years, or higher or lower)? How extensive are your travel, recreation, or charitable gifting plans? Will you move to another state or downsize your home?  Will you want a second home? What will you be doing with your new-found time? These vision components will help you determine a cost for your retirement. Then it’s up to you to have a plan that you can execute now to get there when the time comes. It doesn’t just happen on it’s own. Setting aside what you can and hoping for the best isn’t a plan.

Keep in mind that the older you get, the more your retirement vision becomes a reality (and necessity). I know it’s hard for people in their 20’s and 30’s to have a realistic vision created because it’s still so far away. Your vision may be less specific but it’s still a vision. You can decide at an early age whether you want to take control of your retirement and start at an early age to save a lot…or not. I want to point out to my younger readers that life does not get any cheaper (kids, cars, houses, college) and the earlier you start saving, the better. When you’re in your 40’s or 50’s, your retirement vision becomes even more important. It’s easier to craft a vision when you’re closer to it and you have already gone through some of life’s twists and turns. There’s still a lot of time to make sure you’re executing the right decisions to get to your dreams. While it is still important to craft your retirement vision in your 60’s and 70’s, it’s more of a time to adapt to what you’ve saved over the last few decades. And I don’t mean this to be a bad thing at all…you still can craft a wonderful vision and attain it.

There’s no cost in crafting your vision. Try to put it in writing and review it over time. This is especially important (and sometimes challenging) if you’re a couple. But a vision is just a vision unless you start doing something about it.  Then it becomes a plan to make it come true. Contact me to discuss this article or my retirement planning services.

Enjoy the Journey!