Financial planning starts with a review of your investments including your TSP, brokerage and mutual fund accounts, assets, and all banking and savings accounts and includes evaluating expenses pre and post retirement. You also need to review accounts to ensure proper beneficiary or Pay on Death (POD) designations are listed.
Your personalized plan will ultimately show you what your total income and expenses are pre and post retirement and will put things into a proper perspective for you and your family. The goal is to first determine if your post retirement income, from all sources, will be sufficient for you and your family to maintain the lifestyle you desire. If your calculations reveal a deficit, less money than you need, you have time to make changes, pay off mortgages, and save to make it possible when you do decide to leave. We offer a free downloadable spreadsheet with examples and instructions tailored to federal employees that will help.
Every plan is different and based on your circumstance at the time. You may have children still in college, parents that need your care and attention, home mortgages, and the entire gambit of situations that change from person to person. You are the only one who can effectively develop your plan because you know YOU like no one else does. This doesn't mean you can 't get help, there are many professionals willing to help. Regardless of whether or not you do it on your own or hire a professional, its YOU who must provide the details to insure your plan is sound and viable.
financial planning includes going all the way and that means don't stop after compiling the information. Finish the process with a basic estate plan that includes a will, living trusts if appropriate, health directives and a power of attorney if you become incapacitated and unable to making decisions.
Lets start with the first step and determine your pre and post income and expenses. After you complete our free spreadsheet you will know what you will have to live on in retirement after expenses and then proceed on from their.