03. Is retirement planning leaving you overwhelmed? 3 steps for simplifying the process

In today’s episode, we're discussing how to confidently approach retirement—a major financial transition. Many of us save for it without specific goals in mind. Let's dive in and clarify our retirement plans.

Key Points:

• Retirement Reality: Retirement may seem far off, but it becomes more real as you reach your 40s and 50s. It can be daunting due to unfamiliar terminology like 401Ks, 403Bs, and IRAs.
• Personal Experience: I aimed to retire early by building passive income and maximizing 401K contributions. Achieving this goal was expedited by a job relocation.
• Step-by-Step Approach: Tackling retirement planning with actionable steps to reduce intimidation and move forward confidently.

Four Steps to Confident Retirement Planning:

1. Define Your Retirement Goals:

• Think about your ideal retirement—travel, hobbies, family time, part-time work, or starting a business.
• Write down specific retirement goals to create a clear vision for the future.

Get Real with Your Numbers:

• Write down your current age and desired retirement age.
• List all your current retirement savings (401(k), IRAs, savings accounts).
• Estimate your current annual expenses.

The Rule of 25:

• Multiply your annual expenses by 25 to estimate your savings goal. (e.g., $40,000 annual expenses = $1 million savings goal).
• Remember, this includes your current savings, and you have time to build on it.

Mind the Gap:

• Compare your savings goal with your current savings to identify your 'retirement gap'.
• This gap is what you'll work on closing over the coming years

Complete steps 1 and 2 this week. Get clear on your retirement goals and current financial status. We'll discuss strategies to fill the gap in upcoming episodes.

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