Want to Retire in 10 Years? You Need to Do These Things First
As owners as managers of small businesses and medium sized enterprises (SMEs) we are hard wired to have an entrepreneurial mindset. That often means that we look into the future and see a result, whether that is being the best in the area for your chosen service, or doubling your revenue within 3 years.
But experience also teaches SME owners and managers that execution matters much more than vision, and the many steps taken “in between” setting a goal and achieving it are crucial.
Retirement is the ultimate long range goal, but for many of us, we don’t think about it because it is comfortably in over the horizon. However, if you’re over fifty and wanting to retire some time in your sixties, then here are some things you really need to think about in advance.
Grab a sheet of paper of fire up an excel spreadsheet and calculate your weekly expenses. Now factor in the kinds of leisure activities (twice a week golf or yearly holidays to Queensland for example) that you want to do in retirement and divide those costs by 52 (to get to a weekly cost) and add it to your expenses.
Now multiply your weekly total by 52 then multiply that figure by 1.10 to roughly factor in inflation over the next decade and you have a much better idea of how much you’ll need. Each year.
Armed with that knowledge you can visit a financial planner with much more of a head start of how to plan your investing to get to that amount.
This might not be the first thing that springs to mind, but it is essential. While we have all had weekly or monthly workout plans, a long term workout and health plan is essential in the years leading to retirement.
It’s a scientifically proven fact that after 50 we lose muscle mass and bone density. That means we need to compensate with diet and exercise just to stay at the same point physically. There’s no point having all the money in the world for retirement without a body that will let you enjoy it!
Financial planning for retirement is not a set and forget strategy. Find a financial planner you trust and see them annually, or even twice a year to set your goals, track them, and make adjustments as necessary.
For example, those retirees who had committed to a set and forget strategy were disproportionally affected by the global financial crisis, as being able to adjust their strategy after large losses would have helped them “regrow” their savings rather than stay invested in underperforming assets.
For any advice about retirement planning, business planning or any other issues to do with your SME, give us a call and make an appointment with our experienced, trusted team.