In last week’s column, we looked at three retirees who had not made adequate financial plans to ensure that they could enjoy their golden years. To achieve a financially stress-free retirement, you have to create a proper strategy to replace your working income while you’re still employed.

One of the ways to generate retirement revenue is to invest over time to build a nest egg that will eventually provide the income you’ll need. Planning for an event that’s far in the future is not a simple process, so you must seek advice from a financial advisor. Here’s a look at what the retirement planning process entails:

Step 1:   Establish the Planning Parameters

The advisor will need to know your current financial situation in order to estimate the cost of your desired retirement lifestyle. Experts usually approximate 70 percent to 80 percent of your present expenses for retirement income needs; as some costs such as children’s bills, mortgages and car loans should hopefully gone at that time. Continue reading Building a Retirement Nest Egg →