Vail Daily column: What’s your vision of retirement? |

Vail Daily column: What’s your vision of retirement?

When you start out in your career, you’re probably not thinking much about retirement. At this point, your picture of a “retirement lifestyle” may be, at best, hazy. But as you move through the years, your view of retirement comes into clearer focus — and this vision will have a big impact on your savings and investment strategies.

To create and implement those strategies, you’ll need to define your retirement vision. Here are some to consider:

• Travel: If you’re like many people, you may dream of traveling during your retirement. But what does “travel” mean to you? Do you envision taking a cruise or an international trip every year? Or is your idea of travel just a short jaunt to a popular destination? The difference in costs between global and U.S.-based travel can be enormous, so you’ll need to define your goals and estimate your expenses.

• Second home: Once you retire, you’ll have to make some housing-related decisions. Should you sell your home and “downsize?” Or do you want to keep your current residence and possibly purchase a second home in another part of the country? You’ll need to factor in these choices when you think about how to invest before you retire and how to manage withdrawals from your 401(k), IRA and other accounts during retirement.

• Volunteer activities: You might think that your volunteer activities during retirement won’t affect your finances much. But if you are particularly ambitious, and your volunteerism involves travel, renting space, purchasing equipment and so on, you might be looking at some large cash outlays. Furthermore, if you host people at your house, you may be incurring some types of liability risk, which you might need to address through appropriate insurance coverage.

• Hobbies: Expanded hobbies may involve expanded costs. For example, if you’re good with cars, you might decide to invest in that foreign sports car of which you’ve dreamed. These types of activities can be expensive, so you’ll have to evaluate your saving, spending and investing habits to determine how to accommodate them.

• Second career: Many people look forward to retiring from one career so they can start another — opening a small business, consulting or taking a part-time job. Even if you become a consultant or work part time, you could incur various costs, including travel.

By identifying the various components of your retirement vision and estimating their costs, you can make the saving, spending and investment choices that can help you work toward your retirement dream.

Edward Jones and its associates and financial advisers do not provide tax or legal advice. Financial advisers Tina DeWitt, Charlie Wick, Kevin Brubeck and Chris Murray can be reached in Edwards at 970-926-1728 or in Eagle at 970-328-4959 or 970-328-0361.

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