Not the amount of money you are going to have, but the “What am I going to do in retirement” question is often not answered. Most folks who are preparing for retirement have a pretty good grasp on their projected account balances and the amount they need to save to reach that goal.

However, that is only one piece of the retirement planning puzzle, i.e., having enough money to retire. But do you truly know how much money you will need to retire if you are not sure of your cash flow requirements in retirement?

For example, have you planned for the following:

Are you downsizing or moving in retirement to be near grandchildren or to live on a golf course (think of cost of living adjustments)
Are you traveling and how often (domestic travel, international, or both)
Do you want to start a business or will you seek part-time work
Are you going to purchase a major asset, e.g., a second home, an RV or a boat
Do I want to help my children out financially
Is charitable gift giving part of your estate plan

The point being: how can an individual know how much money they will need for their ideal/dream retirement, if they do not know what they are going to do in retirement. If your retirement plan does not include a future cash-flow analysis predicated upon projected spending needs to meet your retirement plan, then how good is your planning? This is where your financial advisor can help. If you have any questions about financial planning, feel free to contact me at www.mynmfp.com/new-clients. For additional information about this topic click on the title above.