I left career work a couple years ago as part of COVID shakeout leading to reduced company staffing. I was enjoying work enough to keep putting off retirement decision so consider it a blessing in disguise to have the decision to come to me. I think I have enough savings+pension to live comfortably, based on various calculators of
allowed withdrawals over a span of time and other
Are you ready for retirement? articles, but have not worked out a specific long-term budget. And I have been keeping busy with wrapping up short-term projects financed by layoff benefits that, I have not yet shifted to the retirement mindset that feels good about actually spending savings. 35 years ahead as an upper bound for longevity seems like a long time for that money to last, with lots of opportunity for surprises!
My long-range goal is to finalise retirement savings withdrawal plan to span 35 years and other retirement budgeting.
My "bucket list" goals are to actually do recreation that never seemed to happen when I had to go to the office daily. These include several hobby-vehicle projects/cultural events, and recreational travel in the US. Most of this can be covered by tactical savings / pension, leaving retirement savings in the market longer, except when needed for large single-event purchases.
The main credit I would like to give PRISM, or more properly, AAII articles on Risk leading up to PRISM, is the clarification that Risk is the probability of an investment path failing to meet the dollar result at the time required. The common mislabelling of
volatility / variance less than the mean as "risk" is a distraction. In that sense, the textbook recipes provided by (in my case, robo-advisor service provided by my former employer as part of their 401K program tools) are not helpful, as they seem to prioritise minimising bad-year losses. I lack confidence in their advise as it is presented as, "trust our conclusions and don't mind the guy behind the curtain". At least with PRISM, we are the guys behind the curtain and we understand the background of the advice we give ourselves.
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Hugh POLING
amateur radio station KC7HP
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Original Message:
Sent: 10-05-2021 11:48
From: Jenna Brashear
Subject: Lesson 3: What Are Your Goals?
What are your key objectives and needs for wealth? If you are in your 20s or 30s, it may be saving for a house or starting a retirement account. Middle-age investors may be thinking about growing retirement savings further or paying for a child's college education. Those approaching retirement are often thinking about transitioning to living off of their savings. Once in retirement, estate planning can take on a bigger importance. Whatever your goals are, we want you to write them down using the goal.
Reflect
We discuss how you can choose specific investment goals depending on your life stage. Depending on your age, you may have different short and long-term goals. Your goals as a young adult will be different than those when you reach the age of retirement. It's important to reflect and adjust your goals as you transition into different stages of life.
Use this worksheet to define and prioritize your investment goals.
Engage
Please share what life stage you are currently at and how your investment goals align with this phase. What concerns do you have and how has the PRISM process helped you reflect on this adjustment? Let us know in the comments by clicking "Reply" on the right side of this discussion post.
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Jenna Brashear
AAII Community Manager
Chicago, IL
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