Retirement planning is more than numbers

Henry Hebeler for MarketWatch writes: Many people think that retirement planning is simply inserting some assumptions into an Internet planning program and hoping that they have planned for a long enough life.

It's really a much broader subject than that because you also have to be prepared for other challenges as you age.

Whether planning for retirement or already in retirement, here are a number of issues that require more than numbers, they need considered judgment.

Do you have a real retirement savings plan?

Consider how much you might need, the allocation of your investments, automatic savings plans, pre- and post-retirement budgets, getting out of debt, growing health care costs, means of coping with a disability, high inflation or low investment returns, reduction of pension or medical benefits, the need for professional help from a certified financial planner.

Do you have an alternative skill that might provide extra income?

Consider means to keep current, marketability, competitors, investment required, physical capability required, legal and tax matters. 

Do you have savings for emergencies and large purchases that are in addition to your retirement savings?

Consider job loss, uninsured medical or dental expenses, necessary support of a relative, replacing an automobile, major home repairs such as replacing a roof or furnace or even remodeling. See: Retirement reserves: Fund the unexpected

Have you done estate planning?

Consider wills, trusts, taxes, executors, distribution of personal items.

Have you left adequate instructions for those that will survive you?

Consider your will, health care directive, trusts, executor, beneficiary designations, distribution of personal items, list of locations of important documents or possessions, home maintenance contacts, important people to inform of death, dependent and pet care, immediate financial needs, tax documents and data, travel point credits, instructions for activities that have to be continued or closed. Keep heirs informed.

Are you properly insured?

Consider your house, automobiles, support after a spouse dies, liability, disability, long-term-care and especially health insurance alternatives.

Are your important papers and photos in a secure place?

Consider fire proof file boxes, a safe deposit box, cloud backup of your computer files, duplicate list of passwords.

Is your home safe?

Consider security systems, fire hazards, extinguishers, smoke and gas detectors, slippery floors, bathroom grip bars, neighborhood watch program, guns secured, first aid kits and knowledge of CPR or what to do if severely burned or poisoned.

Are you prepared for an earthquake, flood or storm damage?

Consider plans to take cover, means of communications, electricity loss, tools that might help, water tank supports, secured large wall pictures, secured furniture on wheels, etc.

Do you have a 72-hour kit?

Consider food, water, sanitary needs, light, emergency radio, shelter, means to keep warm, medicines, communications.

Do you have adequate food storage for times when you might not be able to buy food?

Consider number of days that might be needed, storage life and rotation, and sources of essential vitamins, minerals, proteins, a home vegetable garden.

Are you managing your time well?

Consider time allocations for work, recreation, study, charitable activities, and exercise.

Do you know what activities you plan to pursue during retirement?

Consider part-time work, enlarging a hobby, volunteering for charity work, sports for all seasons, teaching, travel, becoming a chef, starting a small service business.

Are you doing the things necessary to stay healthy and reduce your health-care costs?

Consider your diet and both mental and physical exercise. See: Good health means more retirement money

Retirement can be exciting and fulfilling or boring and empty. It’s all up to you. Your success will take more thought than simply running a few financial projections.