I have this thing about lists…I love them. I’ll make a list for shopping, for cleaning, for holiday planning. I’ll make a list of chores, a list of projects, or a list of books I want to read. And I will definitely make to do lists. Few things are as satisfying for me as crossing off that last item on the to do list and knowing I’ve accomplished my goals for the day. And if I’m having a particularly stressful week, I might make the to do list just a little bit more attainable. Make coffee? Sure, put it on there. Feed the fish, check the mail, watch tv…you get the idea. But when it comes to planning for retirement, I’ve opted for a more structured approach. If you have some index cards and hopes for retirement, the best time to start planning is RIGHT NOW.

10 Steps to Creating a Financial Plan for a Secure Retirement

1. Write down each of your goals on a 3x5-inch card. I want to travel, with my dream destination being Paris. I’ve found the more specific I am with my goals, the better.
2. Create two stacks--goals you want to accomplish within the next five years and goals that will take longer than five years (you'll save for these goals differently).  
3. Sort the cards within each stack in order of priority, based on how hard you are willing to work or save to reach each goal. Retirement is a pretty big priority for me, so it goes right to the top. 
4. Write on each card what you need to do to accomplish that goal, plus when, what it will cost, and how much you'll need to save each month to reach your goal.
5. Set priorities again, creating a "dream" stack and a "reality" stack to guide your saving and spending.
6. Create a snapshot of your finances by calculating your net worth--the total value of what you own minus what you owe. Include items such as personal possessions, vehicles, home and other real estate, share draft/checking and savings accounts, insurance policies, stocks, and retirement plans. On the liabilities side, consider your home mortgage, credit card debt, student or auto loans, and taxes/capital gains owed.
7. Envision your retirement and the monthly resources you'll need in retirement, along with when you want to retire.
8. Estimate how large your nest egg will need to be to "buy" your retirement goal.
9. Use a worksheet or software program to help calculate how much you'll need to save every month and the return on investment you'll need to reach your goal. You can also find a ton of savings and retirement calculators online for free.
10. Create a spending plan for your monthly income that starts with your "payment" to your retirement savings plan designed to build the resources you'll need for the retirement you desire. AND THEN STICK TO IT.

That’s the toughest part about making a plan: following through. I suggest making that investment in your future an automatic deduction from your credit union account. After all, if you don’t see that money in your checking account, you’re a lot less likely to spend it. This is a good method for getting your thoughts and plans organized and building a solid understanding of where you’re going on your retirement journey. And that’s one to do list I can’t wait to complete.