What is ESG?

Environmental, Social and Governance (ESG) investing started as a way to simply align your personal values with your investments.What started as an effort to exclude stocks in companies blatantly causing harm (tobacco, nuclear weapons, etc.), over time became a way to evaluate a company’s risk beyond their reported financial data. With more investors and financial advisors being drawn to the idea that one can do both good and well when investing, many corporations are beginning to take notice and adopt practices that embrace this concept.So, what exactly is ESG and why should you care?

ENVIRONMENTAL

The key issues being climate change, waste, renewable and sustainable resources and opportunities. Environmental data allows investors to understand how well a given company is doing managing resources like energy and water and preventing pollution to our air and oceans.

SOCIAL

Issues like human rights, product liability, supply chains and benefits. Social data allows investors to understand how a company encourages diversity and inclusion.

GOVERNANCE

Attention is paid to issues like ethics, incentive structures, reporting practices and corruption. Governance data allows investors to understand how a corporation manages risk and encourages labor-management harmony.

This is a great opportunity for us to provide you with a portfolio solution that can add additional value over and above the goals of your investment.

 

HOW WE IMPLEMENT ESG CONCERNS INTO YOUR PORTFOLIO

We believe understanding the new dynamics of ESG investing, especially in the context of the larger market, will be increasingly important in the coming years. The idea that ESG investing is here to stay is nearly a foregone conclusion, especially given the supportive regulatory environment for companies focused on these issues. Life By Design Investment Advisory Services already incorporates ESG data into our portfolio filtering and investment strategy selection processes.

“The future depends on what we do in the present.

WHAT’S BENEATH THE SURFACE?Without ESG Traditional data on a company may include sales revenues, profitability, dividends, valuation, etc.With ESG ESG data reveals so much more information about what’s going on underneath the surface when it comes to risk factors like Environmental impact, Social diversity implications and corporate Governance. This type of information can provide investors with a more complete analysis of a company and offer better insight into risks that might not be visible on balance sheets and income statements.

Why now? The past two years have seen ESG-focused companies (companies that meet sustainability criteria as defined by S&P Dow Jones Indices) outperform other core factor companies, on both an absolute and risk-adjusted basis. Despite all that has happened in markets during this time (trade war conflicts, a U.S. Presidential Election, and a global pandemic), ESG investing has been a source for excess returns. Another tailwind for ESG is the support from world leaders and politicians to address these issues from a regulatory perspective. President Biden’s plans to address social and environmental issues and meet various sustainability targets should incentivize many of the underlying themes associated with ESG. While not all the administration’s policies will get the bipartisan support needed to enact legislative change, we do expect changes in regulation that will affect many industries and sectors of the economy. We believe companies that are dynamic enough to situate themselves as leaders of change will be rewarded by markets.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

MyGoals For Retirement Life By Design

In my many years as a professional financial wealth advisor, I have very seldom seen an example of someone really knowing their Retirement Life By Design- let alone a retirement lifestyle of their choosing- and having a written goals plan to support them in getting there. We all have dreams and the desire to seek the things we believe will bring joy and fulfillment. Studies have shown that the happiest people prioritize time over money. I believe it is more important that you actually know how to achieve the goals you have for yourself and for what reasons you want to accomplish them.

This is why I designed the MYGOALS Planner- with you and your goals in mind. I’ve been searching for years for the right tools and the best technique for staying on track and being organized while achieving goals. I’ve compiled those years of research and designed a tool to make achieving your goals attainable. More importantly, I’ve designed a tool that will keep you on course for the true destination and inspiration for your life goals.

Ask yourself when was the last time you evaluated your life goals? Have they changed recently? Have you since adjusted your financial goals to match? Where do you want to see yourself in 1, 10 and 20 years?

It’s essential to consider your goals, passions and purpose in context- the span of a lifetime. Remembering things that may have mattered to you a few or many years ago, but that no longer hold value. Utilizing the MYGOALS planner in this way can help you implement a vision specific to your Retirement Life By Design.

The word “retirement” has a tendency to conjour up ideas of someone at the end of their viable life taking time to “do nothing”. This widely accepted definition must be rejected. It’s time to reframe your retirement and include it in your life plans beyond setting aside some money and assigning it to be “dealt with” or “faced” when the time arrives. It’s time to create goals that are truly rich and meaningful to you.

Is MYGOALS for Retirement Life By Design right for you?

Ask yourself these questions:

  1. Do I know what my purpose is in life? Am I living my life in a way that reflects that and the things I’m passionate about? If I am not, when am I planning on starting?
  2. Do I have a detailed vision of my Retirement Life By Design? Have I shared this vision with my spouse or partner? Do I know what their Retirement Life By Design looks like?
  3. Do I have an action plan for my arriving at my Retirement Life By Design? Are my short-term goals, decisions and actual use of resources like time and money coherent and supportive of my long-term goals? Can I list the specific things I have accomplished in the past six months on my long-term goals?

If you are unsatisfied with your responses to any of these questions or want to take a more active role in securing your long-term goals, then MYGOALS Planner is for you.

The latest edition of the MYGOALS Planner is now available.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

Investing in Your Goals

If there is anything worth investing in, it is that which is most important and most sought-after by you.

KNOWING YOUR LIFE GOALS

The first essential pass to being able to invest in your goals is knowing what your life goals are. What do you aspire to do, be or give? What are the driving forces behind your aspirations; the passions and purpose that fuel them? Are these aspirations thoroughly your own? How often do you reassess your goals to confirm that they still support your long-term plans both before and after retirement? Our MYGOALS Planner is precisely the tool to guide you in responding to these questions and through the process of realizing your goals.

FINANCIAL PLANNING TO SUPPORT YOUR GOALS

Your financial plan’s main purpose is to support you (financially) in living your Life By Design even after you’ve retired. Creating a well considered financial plan can make the difference in efforts you make toward reaching and enjoying your end goal. A financial plan can aid in the relief of stress and worries related to the financial markets and market events. Providing a clear vision of the long-term future, allowing you to enjoy the important things in life. Life By Design Investment Advisory Services believes in a holistic approach to Retirement Management. We execute this through a well-thought out long-term financial plan based on your risk capacity and Household Balance Sheet that focuses on Retirement Portfolio Allocations that account for growth, income, reserves and longevity. 

INVESTING WITH PURPOSE

Socially Responsible Investing is the practice of investing in companies and funds that have positive social and environmental impacts. SRI can provide you with the opportunity to invest in your goals on grander scale. In this way, your personal actions are driven by your aspirations, and the actions of companies (and in turn the people connected with them) with whom you “partner” with financially are also. The choice to take part in social investment can impact your goals and the goals of others both in the present and future. The idea of not just investing in your own goals (micro-level), but investing in common goals (macro-level) can stretch your impact. Have you considered making the choice to be consciously aware of the impact your investment choices can have beyond your personal portfolio?

BEYOND YOUR GOALS

Creating a Legacy Plan can help ensure that your goals are carried on through the next generation, carrying on your passions and purpose for an everlasting impact. New branches of your family tree and leaves that have not yet grown can be greatly impacted by you choosing to invest in your goals today. Legacy & Estate Planning can provide you with more time to carry through on your intentions through future generations.

RETIREMENT LIFE BY DESIGN

A Retirement Life By Design is for many one of the biggest goals whether or not we have actually stated it to be. You will be hard-pressed to find someone who doesn’t want to enjoy their retirement doing things they love and continuing to realize life goals without the shadow of financial concern surrounding them. Once you’ve identified your life goals and committed yourself to pursuing them to the best of your ability, you will want to think in the longest terms possible when planning.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

The Best Morning Routine (According to 4 Entrepreneurs)

If you’re looking for fresh and revitalizing ways to start your day, look no further. Having a steady morning routine in place will help you be productive and make the most of your entire day. Break your unproductive morning habits and trade them in for some of the best morning routines as told by four successful entrepreneurs.

MEDITATE

Carving out designated time to clear your mind and center yourself is a great way to start your day to ensure it’s a successful one. Nadia Boujarwah, CEO of the clothing subscription service Dia & Co., gets up and meditates every morning. It may seem like a simple step, but it’s a big one that many successful entrepreneurs integrate into their morning routines.

EXERCISE

Starting your day off with some form of exercise is a great way to wake up and get your day started off right. Virgin Group founder Richard Branson wakes up and starts every day with some form of exercise like tennis or cycling. Branson writes in his blog, “Exercise puts me in a great mind frame to get down to business, and also helps me to get the rest I need each night. There’s nothing more satisfying than knowing I have applied myself both physically and mentally every day.” Set your alarm early enough to fit in at least 30 minutes of exercise to jumpstart your days, get your blood flowing and fuel your body to be successful.

SET GOALS

What are your intentions for the day? Do you have specific tasks that you must get done? Sit down and write a to-do list that lays out what your goals are for the day. Not only will this help you stay organized, but the simple act of physically writing down what you have to get done for the day will help you remember to do it. Mandeep Shahi, cofounder and managing partner of ZENMED, an award-winning health and wellness brand, recommends writing down your 3 daily top tasks before you pour your morning coffee or tea.

MAKE YOUR BED

New York Times bestselling author Tim Ferriss of The 4-Hour Work Week has said making the bed is a morning priority for him in order to help prepare his mind for the day and get focused. In the event that nothing goes right for you during the day, at least your bed will be nicely made when you return home to hit the hay.

Getting your day started off on the right foot is the key to having a successful day. If you start your day with a set routine, you will find that it’s easier to tackle your day head-on and be the best version of yourself. Remember, it’s important to formulate a morning routine that works best for you, your lifestyle, schedule and family!

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

How to Live Your Life By Design With Your Partner in Retirement

Interestingly enough, when it comes to retirement, most couples spend a good amount of time planning financially, but then often neglect to plan for the emotional and behavioral aspects of retirement. Specifically, how will you and your partner live your Life By Design independently and together in retirement, without the distraction of work you have become so accustomed to over the years?

Everyone approaches retirement differently, but there are a few items to consider when doing so with your spouse. Co-dependency is potential occurrence to be cognizant of as you settle into your new retirement chapter. While time together is precious, maintaining a social connection with others is essential for mental health and can keep your marriage or partnership thriving for many years to come.

It’s important to note that couples at any life stage- retirement included- may have very different expectations or ideas regarding how they will live individually and as a couple. Either spouse may anticipate more involvement from the other in various ways, which is why it’s important to always maintain communication, openness and understanding with one another. Being on different pages may result in disappointment if either partner is feeling neglected or isn’t receiving fair consideration of their needs during this time.

COMMUNICATE CLEARLY

It’s never fair to expect your loved ones to read your mind or for you to expect them to know how you’re feeling. You might need more alone time and if that’s the case, it’s important to make sure your partner is aware that it’s part of your nature, not necessarily a rejection of their company. After so many years together, it’s safe to assume that your spouse knows a bit about your temperament, but spending an increasing amount of time with one another may alter how you’re both feeling. A need for space can be addressed by detaching yourselves to encounter new hobbies and interests.

CULTIVATE SEPARATE HOBBIES & FRIENDSHIPS

It’s important to focus on building your individual social life in order to avoid becoming too dependent on your partner. In addition to strengthening and maintaining existing friendships, you may want to consider joining a club or organization or volunteering for something you are passionate about so that you have opportunities to develop new relationships. Additionally, the time you spend apart is likely to give you something to talk about when you are together.

SPEND TIME WITH OTHERS AS A COUPLE

Individuals have reported that they experience the most content or happy feelings when they socialize with both their partner and other adults, as opposed to only their partner. Developing, and ultimately maintaining friendships beyond your family or spouse is extremely important to your mental and physical well-being.1 Growing with others who share similar interests can help you maintain a well-rounded and consistently positive attitude.

ALLOW YOURSELVES TIME TO ADJUST

Above all else, it is important to remember to be patient with each other during this time of transition. Change takes time and involves experimenting with various ways to succeed before finding what works for you. At the end of the day, you and your partner are individuals who have different interests and personalities, which is presumably why you fell for one another in the first place. Keeping in mind these details and being respectful of one another’s thoughts and feelings is key.

SHARE YOUR GOALS

A great exercise in cultivating hobbies and encouraging clear communication is the completion and sharing of your MYGOALS Planner with your spouse. If you and your spouse both take the time to explore their passions and purpose and identify concrete goals they have for their life and retirement, it becomes easier to communicate what your goals are and how you envision your Life By Design. You may discover points where your interests and aspirations converge and diverge, allowing you to forge a path, together, to a fulfilling retirement.

Recognizing that retirement represents one of our last, and often most momentous, chapters in life can help one realize that it is the time to take on challenges of which you’ve always dreamt. Through communication, understanding and patience couples can experience these cherished moments together.

 

  1. https://www.mentalhealth.org.uk/publications/relationships-21st-century-forgotten-foundation-mental-health-and-wellbeing
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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

8 Ways Highly Successful People Set And Achieve Goals

When you see successful people who have done well for themselves and achieved a great deal, you may wonder just exactly how they did it. Here are eight tips we can glean from some of the world’s most successful people.

1. VISUALIZE YOUR LIFE BY DESIGN

Setting goals can be abstract, and as humans, the more something is abstract, the harder it is for us to focus on it. Instead of writing down goals like “retire at 50”, try and visualize exactly what you want your future to hold, and plan it out in as much micro detail as possible. So “retire at 50” might be “Build a successful engineering firm. Retire at 50, but still sit on the board. Pay off your home in New York and have second vacation home in Florida. Be able to fund all children’s college accounts in full”, etc. Write your goals SMART (Specific, Motivating, Achievable, Relevant, Time stated) as outlined in the MYGOALS Planner.

Once you can really visualize the specifics of your ideal future, that’s when you will gain the clarity you need. The goal-setting process becomes the framework for creating the kind of bigger future you are looking to achieve.

2. WORK BACKWARDS FROM YOUR END GOAL

Once you lay out exactly what you want to achieve becomes simpler to identify the micro steps that need to occur in order to realize your end goal. Try setting weekly goals or monthly goals and consistently reviewing them as you move forward. Clearly outlining goals as a first step will automatically make them much more realistic. It’s a good idea to have a mix of goals such as financial, strategic, relationship and personal goals.

3. HOLD YOURSELF ACCOUNTABLE

Staying accountable to yourself is incredibly important and incredibly difficult. Working with a coach, or an accountability partner can provide a real incentive to continue on your path and work hard to achieve the outcome you desire. Additionally, consider surrounding yourself with others who will lift you up and share with them what you hope to do. This will help you push yourself and come up with new ideas since you’ll be surrounded by people that you respect. Accountability becomes easier with a system in place, writing down goals and checking in on them regularly is a good way to begin.

4. SET CLEAR DEADLINES

Make sure that you set clear measurements with realistic deadlines when setting your goals. When the goal is realistic, you will feel more properly and emotionally invested in the outcome. It should feel challenging yet also achievable.

5. WRITE DOWN YOUR GOALS

Studies show that we become 42% more likely to achieve our goals and dreams, simply by writing them down on a regular basis.1 There is more of a personal commitment when you put pen to paper and physically write your goals down in a focused space like the MYGOALS Planner. When a goal is embedded in your mind, subconsciously you are looking at every opportunity to achieve that goal. Also, if something is written down, then you can look back for motivation when you need it. As mentioned previously, holding yourself accountable is so important, and writing something down is another way to do that.

6. BREAK YOUR GOALS DOWN

Every successful person knows that you must break your goals down into action items. Setting a big goal helps you to picture the end result, but small goals are easier to work toward. Think of your goals a “pyramid” – your main, over-arching goal is at the top, but in order to reach it, there are a series of smaller goals you must first work achieve.

Breaking your goals down into smaller, actionable items not only feels more “doable” from a psychological standpoint, but there is something to be said about checking those smaller goals off you list as you do in the MYGOALS Planner – you’ll feel empowered every time you hit another milestone, and your success will propel you to keep going.

7. OWN YOUR FUTURE

As the saying goes “A dream without a plan is just a wish”. If you’re not in charge of where you spend your time and energy it’s easy to become distracted. Keep in mind that you are personally responsible for your future and only you can change and work towards a better outcome. It’s important to work in the present but still have a strong plan for the future.

8. USE YOUR GOALS IN EVERY ASPECT OF YOUR LIFE

Goal setting is obviously pertinent to your business, however, it’s important that you set goals in every aspect of your life, not just in your business. What is the motivation or desire for why you set your goals? Think about:

  • Why are These Goals Important?
  • How Will you Achieve Them?
  • How Will They Make a Difference?

Once you know the answer to these questions, it will really help you to strive for a stronger future and understand what you need to change to achieve your dreams.

When we get busy with work and everyday life, we often put our big dreams and goals on the back burner. Many times that free time doesn’t often come, so it’s important to find the time to work towards and achieve your dreams. These eight steps can help you to visualize and work towards achieving what you really want, as they have helped highly successful people for many years.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

To Do: 4 Things for Your Financial Future

Everything starts somewhere. We are captivated by “end results” and “progress”, but rarely remember that before both of these there was a starting point. Your financial goals are no different. Regardless of your goals, it’s always better to know what is going on with your money and to actively protect what you have. Here are four things that you can do today for your financial future…

  1. Save something. A dollar, twenty, more- it all makes a difference. Try saying no to something today… it may help you be able to say yes to something you really want later. Or get use to saving with no plans of spending and enjoy the peace of mind that comes with a financial cushion.
  2. Do something to secure your income. Where does your money come from? If you’re working, keep demonstrating why you’re the best for the job. Retired? Review your investments and their soundness. Your income is vital to your financial livelihood!
  3. Cancel a service you don’t use or need. We all have one (or more). Dig deep and review your finances to see what you’re automatically spending on. Often you can find a subscription that you don’t truly utilize or need. Even if you don’t discover a place to trim the fat, you’ve reviewed your finances and that’s never a bad thing.
  4. Take stock of what you have. Buying another white shirt when you have one forgotten in the back of your closet? Buying more paprika because you can’t remember if you have some in the pantry? Try using what you have and keep track of the money you aren’t spending on duplicates.

Need some more motivation? Life By Design Investment Advisory Services help you identify your goals that truly motivate you and start financial planning for the life you’ve designed.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

Invest in Your True Worth

Value & How You Spend Your Money

Seemingly everything comes with a price tag, but we want to challenge the prices you see on the tags and ask you… 

What’s it worth?

What is it worth to you and your life, really? Beyond the price tag something carries, there is the value which it brings to your life. We at Life By Design Investment Advisory Services believe that this value determines the true worth of what you’re spending your money on. Why not invest in your real life desires?

Here’s an example… If a wedding is something you’ve always dreamt of and you wouldn’t be happier spending the money on a new car or vacation, this can be a good indicator of value. However, if you look at a wedding and think, “If I could spend all this money on my passion for golf or a dream honeymoon instead of a wedding… I’d do it in a second.”… Then you probably need to rethink that huge wedding you’re planning and spending on!

Align the dollars you spend with the true north of what brings you joy. Think of it as investing in what matters most- yourself and family. If living on a boat is a life long dream, then what are you waiting for? Are you taking steps to make that dream a reality? Are you spending in a way that supports you and your dream?

Just because certain big tickets items come with a “set” price tag doesn’t mean that number is final. Consider setting your own price tags prior to shopping what’s out there. You’ll have a more satisfying experience and be less susceptible to buyer’s remorse. If cars are your passion, then that’s where you should place more value. But if you really are more of the type who dreams of yoga retreats on a relatively frequent basis… Why place the value on a car?

Are pressures of the world suggesting you buy the ‘organised sports’ minivan versus that Jeep you envision having and taking the kids to explore Zion National Park? Don’t let the desires of others keep you from your own! It’s time we started asking ourselves “What’s it worth to me?” instead of happily accepting the value and importance society has placed on something at face value.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

Unwrap a Holiday with Less Financial Stress

The stores are decorated, the lights are strung, and the holiday events have started. Even though everything is shiny and cozy, it’s hard to ignore that tiny feeling that the holidays seem to feel more expensive each year. But you’re not alone; holidays are a financially stressful time for many. Holiday sales rose 3.8% year over year to $964.4 billion, according to the National Retail Federation and this trend is expected to continue.

By making a few small changes to your holiday spending habits, you may be able to enjoy the last few weeks of the year with less financial stress.

Make a Budget and Check it Twice

If you love giving gifts, there’s nothing better than making a list of everything you want to give your loved ones. But as more and more fantastic ideas pile up, so do the expenses. Before you start shopping, consider setting a holiday budget of how much, in total, you want to spend on gifts. Remember that it often doesn’t matter how expensive the gift is, but the effort behind it.

Handmade Holiday Hero

Speaking of effort, if a loved one always compliments your handiwork, they might love a gift that didn’t come off the shelf. If you woodwork, knit, paint, bake, or even if you’re really good at crafts, don’t shy away from using your talents on presents. You get to work on your skills, and the giftee gets something from the heart. Just be mindful of the cost of supplies.

Cut Back on Expectations that Don’t Bring Joy

So many holiday traditions come from the socio-cultural norms ingrained in us growing up. Cut back if a tradition isn’t meaningful to you or your family. For example, if you hate sending holiday cards with the latest professional photo of your family and an oh-so-sweet letter with all the high points of the year, then don’t. Send a thoughtful email and save the cost of the photographer and postage.

Now’s a good season to evaluate the cost of your holiday traditions. If the cost of your end-of-year rituals is causing extra strain, consider changing them up for lower-cost alternatives like decorating cookies or a holiday movie night.

Save with Secret Santa

If you have a large extended family, see if you can get everyone on board with Secret Santa. That way each person only needs to buy a gift for one other person. This ensures that everyone receives a personal gift, but also means no one is scrambling to find something for every family member.

Procrastination Doesn’t Pay

Last-minute gifts are cards can be pricey, especially if first-class expedited shipping is needed to get them on time. Start shopping as early as possible, and prioritize relatives across the country (or world) first.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.

 

Living the Dream: How to Plan for Your Ideal Retirement

What would you do with your time if you weren’t working 40 hours every week? Everyone has a different idea of what they want retirement to look like, whether it involves traveling the world or staying comfortable at home. The most important thing about retirement is that you have the time, money, and space to do what makes you happy. But reaching your life goals after your career comes to a close is much easier when you start to plan early. 

Here are the steps you can take now to plan for your ideal retirement later. 

Step 1: Set a Clear Vision for Your Retirement  

The first step in achieving any goal is having clarity about what you want. Ask yourself, “When it comes to my retirement, what do I want life to look like?” Consider aspects of your life such as your home, family, possessions, and experiences. Write down exactly what you picture when you think about your ideal retirement. 

Step 2: Pick Your Priorities  

When thinking about your future goals, it’s key to prioritize those that are most important to you. Think specifically about the goals that will require a certain amount of savings or investments. If you’d like to travel the world and also buy a luxury car, which one is more important to you? By setting these priorities, it’ll make it easier for you to achieve the things you want most first. 

Step 3: Use Your Goals to Inform Your Spending Needs 

Next, when planning for your ideal retirement, you’ll want to figure out your spending needs. How much money will you need to achieve your goals—think about both the big picture and the day-to-day. Do you imagine yourself living in a different city or house? How much money might you need to invest in a new property? On a smaller scale, what activities might you participate in on a regular basis? Consider expenses like social club memberships or dining at restaurants. 

Even if your budget changes over the years, it’s a good idea to continue to think about spending needs after you stop working so you can prepare for your dream retirement. 

Step 4: Starting Investing Early and Often 

It’s never too early to start saving for your future. Once you have an idea of what your spending goals look like for retirement, you can start thinking about how to invest your money now to work towards those goals. Some options for investments that can grow long-term include: 

  • Defined contribution plans—like a 401(k) or 403(b)
  • Individual retirement accounts (IRAs) 
  • High-yield savings accounts 

It’s a good idea to set aside a portion of your paycheck every month to invest in your retirement, no matter what type of investment you choose. Employer-sponsored 401(k) plans make it easy with automatic pre-tax contributions, but there are many IRAs and savings accounts that can also take post-tax contributions from your bank account on a regular schedule every month. 

Step 5: Revisit Your Goals Yearly 

Most importantly, when thinking about your dream retirement, revisit your plan on a regular basis. Keep an eye on your investments and consider contributing more every year to coincide with salary bumps. Revisit your retirement goals periodically and update them—whether you’ve decided to shoot for the moon or back off of some of your loftier goals. As you draw closer to retirement age, your goals and your ability to achieve them will become even more clear. 

If you’re confused about your ideal retirement or how to invest in order to reach your goals, a financial professional can help you gain clarity and strategize your investments. 

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. 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 herein.