Setting financial goals, figuring out how much money you’ll need in retirement, and then taking steps to reach those goals are all important parts of good retirement planning. Managing risk, saving money, and spending are all parts of making sure you are ready when you stop working or cut back on your hours.

The key components of good retirement planning include:

1) Determine Retirement Needs
a) Estimate your living expenses
b) Calculate your retirement income sources

2) Building and maintaining an investment portfolio
a) Asset allocation – diversify your portfolio
b) Contribute to tax-advantaged retirement accounts
c) Periodic rebalancing to maintain your ideal level of risk
d) Keeping costs and fees low

3) Managing Risk and Protecting Your Assets
a) Insurance – health, long term care, life insurance
b) Emergency fund for 6-12 months for the unexpected
c) Estate Planning – wills, trusts, powers of attorney, beneficiaries

4) Nearing Retirement 
a) Preservation of Assets, shift away from higher risk investments
b) Plan a withdrawal strategy
c) Know your coverage options, such as medicare and health insurance
d) Plan for long term care