One of the best parts about working in the pharmaceutical industry is that most Pharma companies can provide some great investment benefits.
Things like Stock Options, Restricted Stock Units, and Employee Stock Purchase Plans most of which will have their own sets of rules and restrictions from company to company.
The downside of all these options is it can be easy to get overwhelmed and actually end up doing less than you might have otherwise.
But you don't need to get a degree in Finance to make a positive impact in your retirement planning. Here are 3 simple steps you can put to action right now.
1) Look at Your Investment Risk
First take a look at your investments and determine if your current holdings are in line with your risk profile. Are you someone who is more aggressive or conservative?
Additionally consider your time horizon - the amount of time you have until you'll need to spend the money. For example, if this is money you'll need tomorrow you might not want to be aggressive with it. In contrast someone who won't need their money for 20 years can afford to take on a little more risk.
A simple risk questionnaire is a great way to get a feel for your comfort level in this area
2) Determine Your Cash Flow
Next put together a list of your total monthly cash flow - what is your monthly income compared to your monthly expenses? Writing out all of your expenses is something that I've found can be particularly helpful.
When I start building a financial plan with someone one of my first questions is how much they think they are spending each month. After some discussion we'll take a look at an expense sheet line by line, and we almost always find that they are spending more than they had thought they were.
Knowing these numbers will allow you to have a better understanding of the amounts you'll need in retirement. Additionally it's an easy way to see where extra savings potential might exist, which could help get you to your retirement goal even faster!
3) Set a Goal to Work Towards
Now that you have an idea of your overall cash flow you should set a retirement goal for yourself to work towards. This goal should generally consist of two parts:
1) How much money do you need to retire confidently?
2) At what age do you want to get to that amount?
Setting these goals will give you something to work towards and will help motivate you to get there. It may also help give some perspective on your savings and whether you should increase the amount you currently set aside.
An online retirement calculator can be another way to help look at your situation and whether or not your goals are realistic. At the very least you want to have a basic starting point for where you're headed. As time goes on continue to evaluate your progress and make any adjustments from there
Keep Working At It
So there you have it, 3 things you can do right now to plan for your retirement.
Want some more specific ideas?
Schedule a call with me.
It's quick, easy, and can make all the difference in your future.
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.