What Your Future Self Wants You to Know

When you try to picture yourself in the distant future, what do you see? It probably feels hard to imagine, doesn’t it? Studies have demonstrated that when we think about our lives this way, we tend to view ourselves as strangers. It’s simply difficult to picture ourselves more than a couple of years into the future, maybe because our egos hold on tightly to who we are now.

This is one of the reasons that retirement planning can be difficult. It feels as though you are setting aside money for a stranger, who is living a completely different life! It’s more interesting to pay attention to our needs right now, or in the near future, rather than devoting attention to someone who is no more than a figment of our imagination.

But that figment is YOU! And if future you could travel back in time, you would probably tell yourself to make a plan for retirement.

Spend time planning your future. Research shows that people typically spend about five hours planning a typical vacation, but not nearly as much time planning for retirement. That’s probably because this summer’s vacation is happening in the near future. Remember that you can plan for both, and that retirement planning deserves equal attention.

Set goals. Retirement planning doesn’t seem like a lot of fun, because it feels like you’re saving money for a theoretical future. Set solid goals for your retirement, like backpacking through Europe or moving to a location you love. Now you’re setting aside money for a dream that matters to you.

Become familiar with your portfolio. Some people are socking away money for retirement, but they don’t really know what they have. Investigate all aspects of your portfolio, such as fees and performance. As you learn more about how your money is invested, you can make better choices with it.

Diversify your plan. If you’re stashing money in a retirement account, you’re certainly one step ahead of many people who haven’t begun to save yet at all. But with the cost of retirement rising, a single account might not do the job. Consult with us about all of your options, so that you don’t overlook important opportunities.