Skip to main content

This article was featured in Investopedia.

March is one of the best months of the year for sports fans. NBA and NHL playoffs are fast approaching, baseball is right around the corner and, of course, the NCAA Men’s Basketball Tournament with its March Madness brackets. Spending an hour or two filling out a bracket can be fun, but how much time did you spend last year creating or updating your financial plan?

According to a survey conducted by TIAA-CREF, 85% of respondents said they spent less than two hours within the past year planning their retirement. The repercussions of not having a financial plan in place or not updating your plan on regular basis can be extremely costly for you and your family, much more so than picking the wrong team for March Madness. If you’re part of this majority and haven’t spent much time thinking about your retirement, here are some steps you should take.

1. There is No Time Like the Present to Create Your Financial Plan

There’s an old Chinese proverb: “The best time to plant a tree was 20 years ago. The second best time is now.” Your financial plan will not suddenly appear on your front doorstep wrapped in a bow, waiting to be brought inside. The longer you delay the process, the harder it is to get started, and the more severe the consequences could be. Start by identifying your goals. When would you like to retire? Do you want to purchase a vacation home? Would you like to visit your kids or grandkids more often? Perhaps you would like to reduce debt. Whatever your goals may be, it is important to write them down.

2. Understand What You Own

How many different investment accounts do you own? Do you know how much money is in each account? What are you invested in? If you’re like many investors, you may have multiple investment accounts you’ve accumulated over the years, and you may not be sure exactly what you own. To create a successful plan, it’s important to have at least a basic understanding of your assets.

3. Get a Handle on Your Expenses

This is a crucial step so you can create a detailed and realistic budget. Write down all of your fixed expenses in one column on a sheet of paper, such as mortgage payment, car loan, child care and groceries. Next, write down all of your monthly discretionary expenses that are not necessary, such as online shopping or your daily cup of coffee at Starbucks.

4. Decide How You Are Going to Fund Your Goals

Once you have clearly defined your goals, understand what you own and created a budget, you need to decide how you are going to fund your goals. This can be the hardest part of the process, requiring the analysis of all previous steps and the forming of an effective strategy. If you need assistance, reach out to a financial advisor who serves as a fiduciary so you can feel confident they are putting your interests ahead of their own. If you do not work with a fiduciary, the advisor is only required to do what is suitable for your situation, not what is in your best interest.

5. Monitor Your Plan

Continuously monitor your plan. If any major life events occur (e.g., new job, buying a house, getting divorced), you need to make sure your financial plan is kept up-to-date. The more current your plan, the more reliable it will be.

The Time to Start Is Now

The sooner you start planning for your financial future, the more time you can spend with your family and friends, or visit that country you’ve always wanted to see. Whether you spend a few minutes during halftime or work during the commercials, any time you spend moving toward a smart, realistic financial plan will help.

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Join our newsletter

"*" indicates required fields

This field is for validation purposes and should be left unchanged.