If you’re on your journey toward retirement, you’re either on track, behind, or ahead of schedule. Do you know where you’re at? Are you only a few years from retirement, but stuck having to work longer than planned? If you feel behind, how do you catch up? Lisa—a listener of the podcast—recently asked what I would recommend for someone who felt like they weren't on track to retire on time. It’s easier to find out now and fill in the gaps than having to delay retirement. So in this episode of Retirement Made Easy, I share how I would handle this situation. If you’re worried you’ve veered off course, don’t miss it!

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You will want to hear this episode if you are interested in...

• [0:23] Are you on track to retire on time?
• [4:10] Step #1: Set a projected retirement date
• [6:10] Step #2: Determine what you need to save
• [8:28] Step #3: Get a plan in place
• [11:25] How much do you need to save? 
• [15:21] Do you have competing goals?

Step #1: Set a projected retirement date

You need to set parameters around “someday.” When do you want to retire? At age 70? Or 72? Or early, at age 60? You need to put a retirement date goal in place that is realistic and achievable. I want you to write it down. Why? Doing this increases your odds of achieving the goal by 1,000%. Once you have a projected retirement date/age, you need to move on to step #2. 

Step #2: Determine what you need to save

How much will you need to save to retire? How do you come up with that? Dave Ramsey has a free retirement questionnaire that can give you a ballpark idea of where you need to be. A financial planner can also help you determine how much you’ll need to have saved to afford to retire. That is dictated by the retirement lifestyle that you want. Do you want to maintain the same lifestyle? Or will you spend more in retirement? 

Step #3: Get a plan in place

Let’s say you're at a mall and you see a sign that says “You are here” but you want to go to Macy’s. So you have to determine what route you’ll take to get to that store. Will you take an elevator or escalator? Or would it be smarter to get your car and drive to the other side of the mall? 

Retirement is an income equation. You want to have enough money to live on in retirement. For most people, you’ll have income from social security, a pension, and your retirement savings income. If you’re debt-free, you can live on a lot less money. Your social security and pension would be your main income sources. If they’re $3,000 a month and you need $5,000 a month, that leaves $2,000 from your retirement savings to fill that gap. 

What assets in your retirement savings will produce an income of $2,000 a month?

How much do you need to save? 

What you need to save depends on the lifestyle you want to have and what your situation is. Will your house be paid off? For the person that wants to live on $10,000 a month in retirement, they’ll need more saved for retirement.

But most people don’t know where they need to be—or if they’re on track. When someone tells me they’re behind, I always ask how much they’re saving or have been saving. Did they make saving for retirement a priority? If you feel behind, can you pay off debt? Increase your contributions? Change your investment strategy? 

Do you pay off the house first? Or allocate more money toward retirement? Do you help your kids or grandkids with college? Or open a Roth IRA? You need to focus on your priorities, then determine if you’re on track or behind.

The bottom line? If you feel like you’re behind—you need to do something about it. If you feel behind, meet with someone who can help you get back on track. 

Resources & People Mentioned

• Dave Ramsey’s R: IQ

Connect With Gregg Gonzalez

• Email at: [email protected] 
• Podcast: https://RetirementMadeEasyPodcast.com
• Website: https://StLouisFinancialAdvisor.com
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