The 11-Minute Retirement Plan from Safe Money Lady™: A Simple Yet Powerful Approach to Financial Freedom
Retirement planning can feel overwhelming, especially with the abundance of financial advice available. But what if you could simplify the process and create a retirement strategy in just 11 minutes? While long-term financial security requires ongoing commitment, taking a few focused minutes to outline a solid retirement plan can put you on the right path.
This "11-Minute Retirement Plan" isn’t about shortcuts or wishful thinking—it’s about maximizing efficiency, prioritizing key financial principles, and taking immediate action. Whether you’re just starting or fine-tuning your existing plan, these crucial steps will help you lay the foundation for a comfortable and stress-free retirement.
Minute 1-2: Define Your Retirement Vision
Before jumping into numbers, take a moment to picture your ideal retirement. Do you envision a quiet life in the countryside, traveling the world, or starting a passion project? Consider:
At what age do you want to retire?
What lifestyle do you desire?
Will you continue working part-time or consulting?
Your vision sets the stage for the financial strategy you’ll build in the next few minutes.
Minute 3-4: Calculate Your Retirement Number
Now, let’s crunch some quick numbers. The general rule is that you’ll need about 70-80% of your pre-retirement income to maintain your standard of living. Use this formula to estimate:
Determine Annual Retirement Income Needs: Multiply your current annual income by 0.7 (or adjust based on your lifestyle).
Estimate Total Savings Needed: Multiply that annual number by 25 (based on the 4% withdrawal rule).
For example, if you currently make $100,000 per year:
You might need $70,000 per year in retirement.
Using the 25x rule, you’ll need approximately $1.75 million saved.
Minute 5-6: Assess Your Current Retirement Savings
Now, take stock of your savings:
How much is in your 401(k), IRA, or other investment accounts?
Do you have additional assets like real estate or passive income sources?
Compare this with your retirement number from the previous step. Are you on track, or do you need to ramp up savings?
Minute 7-8: Maximize Contributions and Employer Benefits
One of the fastest ways to secure your retirement is by maximizing employer-sponsored retirement accounts like a 401(k).
Contribute at least enough to get the full company match (if available).
If possible, max out contributions ($23,000 in 2024 for a 401(k); $7,000 for an IRA).
Consider catch-up contributions if you’re 50 or older.
Even small increases in contributions can significantly impact your retirement savings over time.
Minute 9: Diversify Your Investments for Growth
Your retirement savings should grow faster than inflation. This means investing in a diversified portfolio:
Stocks for long-term growth.
Bonds for stability.
Real estate or alternative investments for additional income streams.
If you’re unsure how to invest, a target-date fund (which adjusts risk based on your retirement year) or a robo-advisor can help manage your portfolio.
Minute 10: Reduce Debt and Cut Unnecessary Expenses
Debt can drain your retirement savings. Take action now to eliminate high-interest debt:
Focus on paying off credit cards and personal loans.
Reduce mortgage payments by refinancing or downsizing.
Cut unnecessary expenses and redirect that money into savings.
A debt-free retirement is a stress-free retirement.
Minute 11: Automate and Review Your Plan Regularly
Consistency is key to retirement success.
Set up automatic contributions to your retirement accounts.
Schedule an annual check-in to adjust savings, rebalance investments, and reassess your goals.
Consult a financial advisor if needed for personalized guidance.
Small Steps, Big Results
The 11-Minute Retirement Plan isn’t a magic formula, but it’s an effective, no-excuses approach to taking control of your financial future. By dedicating just a few minutes to organizing your finances today, you can build a path toward a comfortable, worry-free retirement.
Time is your greatest asset—start now!
Schedule your appontment with me by clicking here. Together we will evaluate your personal circumstances.
Warm regards,
Sharon, Your Safe Money Lady™
Sharon Ben-David
Phone: (954) 261-5200
Licensed Mortgage Broker, Certified Professional Retirement Planning Adviser, and Financial Advocate
Protecting Your Nest Egg, Inc.
NMLS #2308601
