RETIREMENT

Plan with an eye to your future needs

Your retirement plan will provide the financial foundation for your future well-being. It should contain the financial pathway to achieving the level of financial security you hope to have after you retire.

Even when you retire, you'll want to review it on a regular basis and update it when necessary. As you plan or re-plan, you should spend ample time considering a few important factors:

Analyze your financial situation — Project the amount of money you will need to support yourself and any family members going forward. Consider your current financial situation and your indebtedness. Plan for potential major life events — the death of a spouse or child, birth of a child, marriage, major illness, long term care.

Establish objectives — How close do you want your retirement standard of living to mirror your pre-retirement lifestyle? As much as possible, include in your planning every potential aspect of retirement, including activities you may want to do after retirement but don't do now — more travel or a new hobby, for example.

Look at how you invest — How much of a risk-taker are you? Generally, younger people are more willing to assume greater investment risks. Retirees, on the other hand, usually are more conservative.

Are you a short-term or long-term investor? Short-term investments — those with time horizons of five years or less — are usually considered more risky. Many financial advisors lean toward more conservative investments as retirement approaches and begins.

Review your tax situation — What's your tax situation? How will the situation change after you retire?

Review your investments — Do you already have an investment portfolio? What investments are included? Are you satisfied with their performance? Are they meeting your income needs now and do you anticipate that they will continue to do so after retirement?