A wealth building plan for you: Ready to retire-By Greg Ostrowski

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Investing can be such a confusing, scary proposition sometimes. You're never really sure if the information you find is exactly right for you (in the case of some online publications), if the data is relevant (in certain financial studies) or if the advice is credible (such as when you receive a stock tip from your Uncle Fred because "he knows a guy").

Although we can't help you avoid a bad recommendation from a relative, we can at least give you some steps to take that are a bit more tailored to you. As part four in our series, "A Wealth Building Plan for You," we'll address the needs of those ready to retire.
Where to start. You've decided that you're going to retire soon. Congratulations. Now what do you do? Retirement planning presents with it an array of questions that don't usually have right or wrong answers. Much of your decision-making is going to be based on both what you have already saved and your personal preferences.
It's important to remember though, that although you're not going to be working as much, your money does not have the same luxury. In fact, in some ways, your wealth needs to work harder than ever, since you won't have an income stream like you did during your peak earning years. With that, here are some questions to consider as you get ready for some of the best years of your life.
How much income will you need? We're seeing more Americans live well into their 80s, 90s and even longer. That means if you plan on retiring at 65, you'll have 20 to 30 years of expenses to consider, if not longer. A general rule of thumb is that you'll want to aim to have 70 to 80 percent of your current income in retirement. In January 2014, Fidelity Investments estimated that to get there, you'll need retirement savings totaling at least eight times your ending salary. How much will you need to save? The answer to this question depends a lot on factors you have some control over.
Do you plan on spending more, less or the same as what you're currently spending? Does a vacation look more like a visit to Orlando or an excursion to Bali? Will going out to dinner consist of steak and lobster or burgers and fries? Even if you're no longer paying for a home or a child's college education, your expenses could remain the same, or even increase, if you're planning on taking dream vacations and traveling more.

The typical retirement budget*
29% on housing
	9% on utilities
	8% on taxes and insurance
	6% on rent/mortgage
	6% on maintenance
20% on healthcare
	8% on insurance
	6% on drugs
	4% on health services
	2% on medical supplies
13% on food
12% on transportation
10% on entertainment
10% on gifts
6% on other expenses
*Source: The Urban Institute

Everybody's different, but begin to examine all of your monthly expenses and consider comparing them against a typical retirement budget. What can you do without? What is an absolute must? Eliminate all that you can actually live without, like that Costco membership you hardly use. That's money that could be reallocated toward a safari or week in wine country.
Will you take on any type of consulting or part-time work? Not everyone wants to completely retire. Some people want to continue to do some consulting or part-time work to stay busy and help out with expenses. If your current line of work could translate into teaching what you know, look into serving as an adjunct professor at a local community college. It could be a great way to stay active, teach what you know to the next generation, and earn a little extra money in the process.
Or maybe you want to transition completely away from your career's line of work and try your hand at doing something new. This could be an opportunity to earn money from a hobby you enjoy. Maybe you could instruct others on how to keep their gardens flourishing throughout the season or teach a painting class. Your options are only limited by your imagination.
Are you diversified enough if one of your income sources dries up? Have you had a conversation with a financial professional about the possibility of a stock market dip or other financial issues? It used to be that you could retire and shift all of your assets to fixed-income investments, but in today's low interest rate environment, fixed-income investments may not keep pace with inflation. Make certain that your eggs aren't all in one proverbial basket.
Do you have a contingency fund set aside in the event of a medical or other emergency? An emergency fund is not only for people just starting out, who are concerned with job loss. Medical and long-term care expenses that aren't covered under insurance could be costly, and long-term care rose 8.6 percent compared to a year ago, according to the 2015 Long Term Care Insurance Price Index. Having funds already set aside provides you with greater peace of mind.
When you're first starting out, it's a good idea to have three to six months of expenses put away. However, as you near retirement, it's a better idea to put away just a little more. In this case, eight to 12 months is a better goal, and can add a little more of a cushion in the event something unforeseen happens.
Do you want to leave any type of legacy to your family or community? Do you have a special charity or organization that you'd like to see benefit from your generosity? Or do you want your family to have some financial security to pursue dreams of their own?
Do you have enough money to enjoy those big-ticket experiences? This is your retirement. It's for you to enjoy. But it's also important to understand budget limitations. If you have some big-ticket items you've been looking forward to for years, be sure that you have a plan in place to make it happen responsibly.
"You are never too old to set a new goal or to dream a new dream." -- C.S. Lewis. Retirement planning can be confusing, since every situation is different. But it doesn't have to be with the help of a financial planner. By having an understanding of what your retirement will look like before you get there, you can better plan to make your dream a reality.
Securities offered through SII Investments, Inc. (SII), Member FINRA, SIPC. Advisory Services offered through Scarborough Capital Management (SCM), a Registered Investment Advisor. SII & SCM are separate companies. Neither SII nor SCM provide tax or legal advice.
Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

Culled from US News