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Retirement Planning: Are You on Track? Thumbnail

Retirement Planning: Are You on Track?

Massie Financial Planning understands the unique challenges faced by the sandwich generation, who must plan for their retirement while supporting both their children and aging parents. Determining whether you are on track for retirement involves several key steps:

1. Define Clear Retirement Goals: Identify specific retirement objectives, considering both personal aspirations and familial responsibilities. Common goals include maintaining a desired lifestyle in retirement, supporting children’s education, caring for elderly parents, and achieving financial independence to avoid becoming a burden on family members.

    2. Translate Goals into Financial Targets: Quantify your retirement goals by calculating the necessary income to sustain your desired lifestyle, factoring in inflation and other financial obligations. This step involves determining the total savings required to generate the needed retirement income, using principles like the 4% rule, which suggests a retiree can withdraw 4% of their savings annually without depleting the principal over time.

    3. Assess Current Financial Status: Evaluate your current savings, investment portfolios, and other income sources (like pensions or rental income) against your quantified retirement goals. This assessment should include reviewing your asset allocation, savings rate, and expected investment returns to ensure they align with your retirement timeline and income needs.

    4. Implement a Strategic Investment Plan: Develop a diversified investment strategy that supports both short-term liquidity needs and long-term growth objectives. This may involve adopting a bucket strategy where assets are allocated across different time horizons: immediate expenses, medium-term needs, and long-term growth, adjusting the asset allocation based on the time frame and risk tolerance.

    5. Monitor Progress and Adjust as Needed: Regularly review your financial plan to ensure you remain on track to meet your retirement goals. This involves monitoring investment performance, revisiting financial goals, and adjusting your strategy in response to life changes, market conditions, and updated financial objectives. Utilize financial planning tools, such as Monte Carlo simulations, to model various scenarios and understand the likelihood of achieving your retirement goals under different market conditions.

    6. Plan for Contingencies: Given the sandwich generation's complex responsibilities, it's important to have contingency plans for unexpected events like health issues, changes in employment status, or shifts in family dynamics. This may involve maintaining an emergency fund, considering insurance options, and having flexible financial planning that can adapt to changing circumstances.

    Massie Financial Planning is committed to guiding the sandwich generation through the complexities of retirement planning. Our approach is designed to provide clarity, security, and confidence in your ability to achieve a fulfilling retirement while meeting your familial obligations. Schedule your free consult today to see if we could be the right fit or you and your family’s planning needs.

    Massie Financial Planning (MFP) is an investment adviser registered with the state of Virginia.  MFP may only transact business in states where it is registered, exempt, or excluded from registration.
    Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
    The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of the information provided at these websites.