Thoughtful people think about the lifestyle they want when they retire, and make plans to accomplish their goal. They think about where they plan to live when they reach retirement age, how much annual and monthly income they want to have, if their retirement includes travel for fun and to visit their children, how they choose to spend their time, and the activities they value.

Usually people wonder if they’ll have enough money when they retire, a question that can be answered through the calculations of an experienced financial advisor. All the details of a retirement lifestyle can be monetized and a very accurate financial picture can be established that clearly articulates the amount of money that must be set aside annually in the time remaining before retirement to reasonably assure the desired lifestyle can be achieved.

The key to attaining the lifestyle of your choice depends on the amount of time available before your retirement age is reached, of course. Another key factor is the amount of savings and investments that can be developed in the time remaining so there are sufficient resources steadily building wealth toward the total amount of money needed for the desired lifestyle.

As you know, not everyone can achieve the retirement lifestyle of their dreams because of the interference of various factors that erode wealth. Divorce, illness, and poor choices are some of the detrimental factors that become obstacles to people’s hopes for their confident and comfortable financial future.

Having a retirement plan may not be essential to retiring, but it does provide the best chance for having a decent retirement. Think about the last vacation you took. One of the things you probably did on your trip was pull out a map, and maybe you consulted the Internet about some of the important details to include on your trip. Just as you would not get into your car and take a 3,000 mile road trip without a map and some idea of where you were going, neither should you assume that the money you’ll need in retirement will be available in 10, 20, or 30 years without making some plans now on how you expect to have enough.

Money is quite a magical thing. If you’re careful with your money, and save a reasonable amount of it, the time value of steadily adding to your savings and carefully investing these funds will multiply what you have many times over. Even if you won the lottery, you would still need to know how to prepare for your financial security. The news regularly relates stories of people who had fortunes and squandered them.

There are three steps that can provide you with the security of a Lifestyle Protection Plan. Your Lifestyle Protection Plan is designed to serve your current lifestyle, and help you preserve this lifestyle when you reach retirement. The three steps are:

  • Setting short-term, midterm, and long-term financial goals;

  • Understanding your financial pyramid and developing it;

  • Setting a pattern of allocating resources toward your goals that result in your financial success.

Your Lifestyle Protection Plan will be more thoroughly explained in the next several articles, and is a tool that should become an essential feature of regular interest to you throughout the year. No one but you and your family will have more than a passing interest in your retirement preparations, so it’s incredibly important that you establish your retirement plan as soon as you can, begin making allocations right away, and seek professional advice at least annually about the progress you’re making toward achieving your goals. With some forethought and determination, you can build your retirement account and live comfortably and securely during the last third of your life.

We hope this article about protecting your future financial lifestyle was informative, and if you are interested in consulting with us about your own Lifestyle Protection Plan, please contact us so we can begin a discussion about achieving your retirement goals. Thank you!

Joseph M. Maas, CFA, CVA, ABAR, CM&AA, CFP®, ChFC, CLU®, MSFS, CCIM

Synergy Financial Management, LLC

13231 SE 36th Street, Suite 215

Bellevue, WA 98006

ph: 206.386.5455

fx: 206.386-5452

www.sfmadvisors.com