As you read this blog, if a friend or relative comes to mind, please share it, as I’m sure someone in your life will appreciate the read. You may find yourself in the milestones below, as well. So, let’s get started…
As humans, we crave a measuring stick to evaluate our financial future. This isn’t typical coffee table conversation among neighbors, friends or even parents. Sure, you’ve got a buddy that tells you how he bought Tesla stock a few years ago and how he’s crushing it with investments…He also never lost money on a sports bet…that he shared with you anyway. So how do you know if you are on track? There are numerous robust online calculators out there, but what about something simple, something so basic that a millennial could jump on board with very minimal effort.
You are in luck! As a financial advisor and CERTIFIED FINANCIAL PLANNER™, I’ve reviewed numerous unique financial situations and developed hundreds of retirement plans over the years. So, I wanted to discuss an easy to follow baseline plan. This is not a plan on how to get rich quick, it provides the basic building blocks to retiring with a $1 million portfolio and generating a realistic amount of retirement income in the future. This plan is designed around someone that either is married or plans to start a family. I call it the Big Boy Pants Plan and it is comprised of:
- Easy to understand financial milestones with simple instructions
- Five-year increments
- Assumes a married couple
This is an achievable plan, regardless if you join the military at 18, enter trade school, or decide to pay big bucks for a really cool certificate that you hang on the wall (that’s what I did). So here goes…
Minimum Big Boy Pants Financial Milestones
An example of retirement income and expenses
Expenses: $7k / month minus your mortgage payment (your mortgage is now paid off)
If you looked at your age and are not on track yet, find a trusted financial advisor. There are many factors that may derail this plan, but other options can put you right back on track, such as:
- Enhanced ability to save
- Future inheritance
- Spending habits
- Real estate
There are plenty of knobs to turn to create the right plan for you based on your situation. The Big Boy Pants Plan is my effort to make the retirement planning process an undaunting task, and maybe to encourage some kids to move out of their parent’s house so Mom and Dad can finally retire.
Invest in Your Best Life…adventures await!
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss.