By Jim Shellenberger, CFA, CFP®
Cookie cutters are great for cookies, but when it comes to retirement planning, they just don’t cut it.
The reality is, there’s rarely a one-size-fits-all rule that works for everyone’s retirement dreams. Those financial indexes you see all over the internet? They’re not for everyone. Remember, they’re just numbers and don’t have emotions, families, or tax bills like we do.
To steer clear of relying too much on these indexes, I’ve put together some tips to help you zero in on your own personal financial story, rather than following a one-size-fits-all retirement plan.
Identify Your Unique Retirement Goals
Your starting point should be understanding how much you’ll need to pull from your investments/savings on a monthly basis. The amount you decide on should be directly tied to the type of lifestyle you want to live during your retirement years.
Next, decide when you want to retire. That timeline determines how many years you expect to rely on an income source you create. For example, will that income come from Social Security benefits, a pension, 401(k), Roth IRA, or some other source? And in what order?
Don’t forget about family and health considerations. They should be factored into your evolving retirement plan.
All these personal decisions lay the foundation for your unique retirement plan.
Don’t Get Distracted
It’s so easy to be led astray by today’s constant influx of irrelevant information. Imagine trying to research retirement financial information online without getting sucked down a rabbit hole. It’s nearly impossible, right?
Instead of getting irretrievably sidetracked, try to remember that the only investment performance you need to watch is how you’re doing in relation to your own personal retirement goals and timeline.
For example, there’s really no point in checking your progress against an index or some random person’s portfolio results. Your investment strategy is 100% based on your past, present, and future life—no one else’s.
Stay Focused on Your Outcome
Mixed messages on social media, email scams, website popups, and news sources are just a few of the many distractions that can lead you astray. Now add in the inherently volatile nature of investment data and you have a recipe for constant disruption, making it way too easy to lose sight of your goal.
Here are some ideas for keeping your eyes on the prize:
- Regular reviews: Be diligent about scheduling time to regularly check your progress; make necessary adjustments and stay on track.
- Automated savings: To ensure you’re consistently saving, set up automatic deductions from your paycheck to your retirement savings account.
- Vision board: Make a visual representation of your retirement goals. Put your vision board somewhere you’ll see it often.
- Remember your “why”: To help you stay focused, remind yourself of the reasons you want to retire in the first place.
- Celebrate milestones: Take time to praise yourself for reaching milestone goals, even if they’re small compared to your big-picture goal.
- Be patient: Like any goal, realizing your retirement dreams takes time. Stay persistent even when life throws you a curveball or two.
The Bottom Line
Your individual financial plan for pursuing your own retirement goals is the only benchmark you need. The internet will throw lots of distractions your way, but try to ignore them and stay focused on your own path.
If you start measuring your goals against online indexes or other people’s retirement plans, you run the risk of losing sight of your own big picture.
Receive a Personalized Financial Strategy
At Elevate Wealth Management, we know you’re not just a number, and your finances shouldn’t be either. We take the time to get to know you before we offer any advice on where to go next. We believe that there’s no “one size fits all” when it comes to your hard-earned wealth.
If you’re eager to craft a plan that’s as unique as you are, schedule an introductory meeting by reaching out to us at jshellenberger@frontierasset.com or 307.673.5675. Let’s team up and tailor a strategy that’s best suited for your unique life.
About Jim
Jim Shellenberger, CFA, CFP® is a financial advisor at Elevate Wealth Management, an independent, fee-only wealth management firm serving young professionals, pre-retirees, and retirees in Sheridan, Wyoming, and surrounding areas. With the mission of serving and educating, Jim is dedicated to providing comprehensive, top-notch services that not only help his clients reach their goals, but also empower them to make the best financial decisions for their lives and walk toward their future with confidence. Jim is known for going the extra mile, not only offering valuable knowledge in investment management as a former investment analyst, but building long-lasting relationships so he can give honest, customized advice and strategies that make an impact on their lives.
Jim has a bachelor’s degree in business administration with a minor in finance from the University of Wyoming. He is proud to be a Wyoming native and loves exploring the outdoors with his family—hiking, fishing, hunting, and backpacking. Faith is an integral part of Jim’s life, and he always looks forward to attending church on Sundays, Bible study on Fridays, and being part of his church community. He’s also an avid sports fan! Fun fact: Jim owns shares in the Green Bay Packers. To learn more about Jim, connect with him on LinkedIn.
The views expressed represent the opinion of Frontier Asset Management. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Frontier Asset Management believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. The use of such sources does not constitute an endorsement. Frontier does not have an affiliation with any author, company or security noted within. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and the Frontier Asset Management’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results.
Frontier does not provide tax advice. Please consult with a CPA for recommendations pertaining to individual circumstances.
Elevate is the financial planning division of Frontier Asset Management. Frontier Asset Management is a Registered Investment Adviser. The firm’s ADV Brochure and Form CRS are available at no charge by request at info@frontierasset.com or 307.673.5675 and are available on our website www.frontierasset.com. They include important disclosures and should be read carefully.
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