Saving for Retirement? Write Out a Retirement Road Map to Stay on Track

Published on September 19, 2017

Smart investors are thinking about ways to build up their nest eggs … but how many are giving serious thought, in a formal way, to how they want to spend their retirement years?

Whether you’re aiming for a simple country life or one that’s all about worldwide travel and other pursuits, living your retirement dream takes good advanced planning.

Some financial advisors are encouraging their clients to write a formal retirement policy statement that will to guide their near-retirement investing and their spending after they stop working. This road map is meant to guide financial decisions before and during retirement by establishing a set of saving and spending rules.

A retirement policy statement should include a lifestyle description that reflects your plans for how you’ll live—whether it’s lavish or humble, filled with low-cost hobbies or with pursuits that require an expensive purchase.

One should also include planning for a big event, something that will really change your life, such as an out-of-state move. Factor in your existing mortgage’s time line until payoff, whether or not there is a second home to deal with, planned medical procedures, or anything else for which funds will need to be available.

An investment plan is a major part of this retirement policy statement. Sit with your trusted advisor to go over your net worth, and review insurance policies and your investment accounts. And, take a look at ways to build a more eclectic retirement portfolio through self-direction.

Self-directed retirement plans allow you to include a broad array of alternative assets not allowed in typical plans, based on what you already know and understand. If you already own vacation property, you certainly know what it takes to make that investment and maintain it; but did you know you can include investment properties in a self-directed IRA? If you invest in oil futures, coffee or other commodities, you could include them in a tax-advantaged self-directed retirement plan as well. The list of nontraditional investments you may include is long and varied. For individuals who are comfortable making all their own investment decisions (that’s the “self-directed” part), including these plans in your policy statement could put you on the road to greater retirement wealth.

Want to know more? Download our free white papers, check out our informative videos, or contact Next Generation Trust Company to get quick answers to your questions about self-direction as a retirement wealth-building strategy. As a full service custodian, we provide transaction support and account maintenance for our clients and hold the assets on behalf of the accounts. Contact us to discuss your self-directed retirement road map at Info@NextGenerationTrust.com or 888.857.8058.