Retirement planning is the process of evaluating your current financial standing and creating a strategy to help ensure that you achieve your desired retirement lifestyle. It is about matching goals with financial realities, and the focus is generally on providing a lifetime of income after your last paycheck.
Because an individual’s retirement years can span decades, retirement planning generally dominates other financial goals. A successful plan put in place during your working years should address ways to help maximize growth and prepare for tax-efficient distributions. Planning for retirement requires us to devise simultaneously a plan for growing your wealth and a plan for drawing on your wealth: accumulation and distribution. It also involves risk management. Other subjects, such as IRA rollovers, employer-sponsored plans, and executive compensation, are also appropriate to retirement planning.
Retirement planning is a critical component of wealth management, and a good retirement plan will be well coordinated with your overall plans for investments, insurance, business, estate, and taxation.