Retirement can be wonderful if you have the assets to support yourself. If not, it may be difficult financially. To retire in a financially comfortable place, you must plan. Have you constructed a plan for a secure retirement?

The Retirement Dream

Most folks anticipate the time when they can stop their 9-5 work routine and spend quality time in a comfortable retirement, be it at home with their family or in an assisted living Hamden CT home should the need arise.

Their dream, well within reach for some, is to accumulate enough in financial assets so that they could live in comfort, travel to interesting locales, spend time with their children and extended family, and have enough to give back to society and those less fortunate.

A comfortable retirement is an achievable dream. Unfortunately, some folks do not get there. In many cases, it's not that they don't have the means to create their well-funded retirement, instead, it's that they failed to plan.

Some people can do this type of personal financial planning by themselves. Many others, however, may see fit to partner with financial experts for education and guidance.

Retirement-Ready Assessment

Do you think you are close to retirement? Evaluate at the following list and see where you are on your retirement-ready journey?

• Know Your Risk Tolerance: An honest assessment of your financial risk tolerance is necessary for generating a solid retirement plan. It's true, some asset classes can be high risk, others less so. Make sure you know what kind of investments make you feel uncomfortable. Also, how much drawdown can you withstand before you would throw out your carefully constructed retirement plan?
• Assess Your Current Asset Base: Next, take your "financial snapshot in time". A series of questions can help. Do you know your net worth? Do you have any debt? How much money do you have in savings and investments? Do you have passive income?
• Review Your Asset Allocation: Your asset allocation simply means looking at each asset category you are invested in and how much of your capital is in each. There is no "one size fits all". Different folks will have different ideal asset allocations depending, among other things, their risk tolerance and the number of years until retirement.
• Know What You'll Collect from Social Security and Pensions: Many people will be able to collect from one or more pensions as well as social security. The federal government provides an easy calculator that will enable you to estimate your social security benefits in retirement.
• Estimate Your Healthcare Needs and Costs: For those ready to retire, health care can be a big concern. It is often a costly one as well. Stay healthy: it is the best way to reduce your healthcare costs in retirement.
• Evaluate Your Tax Situation: Taxes cannot be avoided, but, by law, they can be minimized, as long as the tax code is followed. With proper planning, taxes can be lowered by choosing tax-friendly investment vehicles. Roth IRAs and Roth 401-Ks are excellent for tax purposes because your withdrawals fare generally tax-free. Other tax-savvy investments should be built into your plan as well.

In many cases, working with a good financial firm to help you with the retirement planning process has proven a good idea for many. Summitry Advisors can help you build a sturdy retirement plan. Remember, if you execute your plan, your retirement dream can become a reality.