Clarify Your Retirement Goals with These 4 Questions
Before you get wrapped up thinking about savings, income and taxes, you need to think a little harder about what you really want from your retirement. Setting some life goals will give you and your financial planner a clear direction.
What’s important to you about money?
I ask clients and potential clients this question all the time, and I’ve learned — after having had thousands of these conversations — that few people give the topic much thought.
That’s unfortunate, because the answer — or answers — will help you focus on what matters to you most.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Investors (and many financial professionals) tend to put all the emphasis on growing their nest eggs for retirement and not focusing on whether the money you amass while you’re working will last after you’ve retired. But there’s so much more to a comprehensive financial plan than just the beginning and the end.
You should be using your money as a tool to achieve your goals. And your adviser can’t help you reach those goals if you don’t even know what they are, or if you can’t articulate them, when you’re discussing retirement strategies.
Here are some questions to help you get started. (If you’re married, be sure to include your spouse.)
Who do you want to help with your money?
Answering “myself” or “ourselves” is a perfectly acceptable answer. But if you have others you want to include — parents or children or anyone else you’ll need or want to take care of — be specific about what you’d like to be able to do for them. You could and should be exploring how you’ll cover those costs now and in the future.
Do you have any specific “bucket list” items you wish to achieve?
Have you and your spouse dreamed of traveling, moving or changing your lifestyle in any way? When do you want those things to happen? Have you considered and included the costs of these activities in your financial plan?
You can’t take it with you, so do you want to live large or leave some behind?
Is it OK to spend every penny you have during your lifetime, so that the last payment to the funeral home barely clears, or does leaving a financial legacy matter to you? Which people or organizations should receive your money? Your adviser can help you set up a course of action (a will, a trust, life insurance, etc.) to help you achieve your legacy goals in the most tax-efficient manner possible.
What would happen if you or your spouse became sick or disabled?
Have you talked about what kind of care you’d prefer if it’s required (e.g., skilled care in your home, adult day care, an assisted living facility)? How would you pay for care, and how would your choices affect your loved ones in the short and long term?
Money is a very personal topic, and sharing your thoughts on these issues can be uncomfortable — particularly if you and your spouse disagree on your various goals. But if you’ve never thought about your money in this way before, this can be a powerful and revealing exercise. Complete it thoughtfully, and discuss your options with the people affected.
Then you’ll be ready to build a truly comprehensive financial plan.
-
What Really Happens in the First 30 Days After Someone DiesThe administrative requirements following a death move quickly. This is how to ensure your loved ones won't be plunged into chaos during a time of distress.
-
AI-Powered Investing in 2026: How Algorithms Will Shape Your PortfolioAI is becoming a standard investing tool, as it helps cut through the noise, personalize portfolios and manage risk. That said, human oversight remains essential. Here's how it all works.
-
Why Some Michigan Tax Refunds Are Taking Longer Than Usual This YearState Taxes If your Michigan tax refund hasn’t arrived, you’re not alone. Here’s what "pending manual review" means and how to verify your identity if needed.
-
What Really Happens in the First 30 Days After Someone Dies (and Where Families Get Stuck)
The administrative requirements following a death move quickly. This is how to ensure your loved ones won't be plunged into chaos during a time of distress.
-
AI-Powered Investing in 2026: How Algorithms Will Shape Your Portfolio
AI is becoming a standard investing tool, as it helps cut through the noise, personalize portfolios and manage risk. That said, human oversight remains essential. Here's how it all works.
-
A Newly Retired Couple With a Portfolio Full of Winners Faced a $50,000 Tax Bill: This Is the Strategy That Helped Save ThemLarge unrealized capital gains can create a serious tax headache for retirees with a successful portfolio. A tax-aware long-short strategy can help.
-
5 Retirement Myths to Leave Behind (and How to Start Planning for the Reality)Separating facts from fiction is an important first step toward building a retirement plan that's grounded in reality and not based on incorrect assumptions.
-
I'm a Financial Adviser: Silence Is Golden, But It Hurts Your Heirs More Than You ThinkTalking to heirs about transferring wealth can be overwhelming, but avoiding it now can lead to conflict later. Here's how to start sharing your plans.
-
Will Your Children's Inheritance Set Them Free or Tie Them Up?An inheritance can mean extraordinary freedom for your loved ones, but could also cause more harm than good. How can you ensure your family gets it right?
-
I'm a Financial Adviser: This Is the Real Key to Enjoying Retirement With ConfidenceA resilient retirement plan is a flexible framework that addresses income, health care, taxes and investments. And that means you should review it regularly.
-
Life Loves to Throw Curveballs, So Ditch the Rigid Money Rules and Do This InsteadSome rules are too rigid for real life. A values-based philosophy is a more flexible approach that helps you retain confidence — whatever life throws at you.
