BUSINESS MATTERS
time off from work for extended periods - to travel, raise a family or simply take a break - at various life milestones is becoming more common. If this sounds appealing, it will require some diligent planning and saving along the way and will impact the way you think about saving for a traditional retirement down the road.
* How important is it to leave a financial legacy? Ask yourself, would you rather spend every penny or leave money to family, friends or a charity after you're gone? This answer will impact your financial decisions in retirement. Estate planning isn't just for the ultra-wealthy - most people should create a basic estate plan, including a will that outlines how you would like your assets to be distributed.
* Do you and your spouse or partner have the same retirement lifestyle vision? If you are in a relationship, it's a good idea to get on the same page when it comes to retirement. Do you want to be active? Are you planning to stay in your current home or retire elsewhere? These questions will not only help determine how much you need to save, but also can inform whether you will merge your finances or keep some separate to meet differing goals.
* Do you have a plan for funding your retirement once you decide to tap your savings? You've spent most of your life saving, so before flipping the switch, make sure you have a plan in place for
how to make those savings last. To do this, consider consulting a professional to create a retirement income plan and start with the basics:
* Choose the right mix of conservative and aggressive investments to provide diversified sources of return.
* Determine how much you need to withdraw on an annual or monthly basis.
* Learn about products and services designed to help manage and deliver retirement income.
For help thinking through these questions, you can visit a Charles Schwab branch. Schwab has also created a card game called "The Next Chapter" with more retirement questions to explore.
"These questions will not only help determine how much you need to save, but also can inform whether you will merge your finances or keep some separate to meet differing goals."