By Mike Gibbons, RICP®
Using cookie cutters for baking is fine, but for retirement planning? Not so much.
The reality is, there’s hardly ever a universal benchmark that fits everyone’s retirement goals, especially working as a pharmaceutical or biotech professional with different needs than the norm. Those financial indexes you see in online news sources? They’re data-driven and don’t consider individual circumstances like family needs, taxes, or emotions.
To avoid relying on generic benchmarks, I’ve put together a few recommendations to help you focus on your unique financial situation rather than typical retirement models.
Identify Your Unique Retirement Goals
Your starting point should be understanding how much you’ll need to pull from your investments/savings on a monthly basis. The amount you decide on should be directly tied to the type of lifestyle you want to live during your retirement years.
Next, decide when you want to retire. That timeline determines how many years you expect to rely on an income source you create. For example, will that income come from Social Security benefits, a pension, 401(k), Roth IRA, or some other source? And in what order?
Don’t forget about family and health considerations. They should be factored into your evolving retirement plan.
All these personal decisions lay the foundation for your unique retirement plan.
Don’t Get Distracted
It’s so easy to be led astray by today’s constant influx of irrelevant information. Imagine trying to research retirement financial information online without getting sucked down a rabbit hole. It’s nearly impossible, right?
Instead of getting irretrievably sidetracked, try to remember that the only investment performance you need to watch is how you’re doing in relation to your own personal retirement goals and timeline.
For example, there’s really no point in checking your progress against an index or some random person’s portfolio results. Your investment strategy is 100% based on your past, present, and future life—no one else’s.
Stay Focused on Your Outcome
Mixed messages on social media, email scams, website popups, and news sources are just a few of the many distractions that can lead you astray. Now add in the inherently volatile nature of investment data and you have a recipe for constant disruption, making it way too easy to lose sight of your goal.
Here are some ideas for keeping your eyes on the prize:
Regular reviews: Be diligent about scheduling time to regularly check your progress; make necessary adjustments and stay on track.
Automated savings: To ensure you’re consistently saving, set up automatic deductions from your paycheck to your retirement savings account.
Vision board: Make a visual representation of your retirement goals. Put your vision board somewhere you’ll see it often.
Remember your “why”: To help you stay focused, remind yourself of the reasons you want to retire in the first place.
Celebrate milestones: Take time to praise yourself for reaching milestone goals, even if they’re small compared to your big-picture goal.
Be patient: Like any goal, realizing your retirement dreams takes time. Stay persistent even when life throws you a curveball or two.
The Bottom Line
Your individual financial plan for pursuing your own retirement goals is the only benchmark you need. The internet will throw lots of distractions your way, but try to ignore them and stay focused on your own path.
If you start measuring your goals against online indexes or other people’s retirement plans, you run the risk of losing sight of your own big picture.
A Personalized Financial Plan
At Gibbons Financial Group, we know your unique story is key to effective financial planning. Our team takes the time to understand who you are before offering any advice. We believe there isn’t a one-size-fits-all solution for everyone and we approach pharmaceutical industry retirement planning without the typical financial benchmarks.
If you’re ready for a personalized financial plan, call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma. Let’s work together to create a plan tailored just for you.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.