Flight Planning Your Retirement (Enroute)

In my previous post on the subject, Flight Planning Your Retirement (Pre-Flight), I discussed how airline pilot's prepare for their flights and how it relates to your own financial "preflight planning".  This post will discuss how pilot's constantly monitor their flight and adjust the plans enroute and how you should be doing the same with your finances.

Now that our airplane has taken off, we know we are far from over.  During the remainder of the flight, pilots must monitor the flight, weather, systems, and more and adjust the plan as necessary.  We hope the flight will be "boring", but we plan for the worst as we go along.  By constantly monitoring and adjusting the plan, we can minimize the effects of any changes.

Now that you have implemented your retirement plan (or any financial plan for that matter), you must also monitor it.  I don't mean every day, but regularly check and make sure you are on course.  The regularity depends on you, but it should be at least once per year and any time there is a "life event", such as new child, marriage, etc.  While you certainly don't want life to be boring, you also want to be prepared for life changing events.

As happens during airline flights on occasion, things do go wrong and we have to adjust our plan accordingly.  The issues are usually minor and don't involve much more than an altitude or speed change.  Sometimes things get more dramatic, which you have likely seen on TV or in the paper.  No matter what, preparation is still key and that means planning ahead for problems along the way.

As you go through life, your financial plan will change also.  Besides normal life events, chances are good that you will encounter some sort of financial crisis.  It may be minor, or it may hit you hard.  Again, planning for those types of events is a huge part of ensuring your financial success.  Hopefully, you will not see your house get destroyed by fire, tornadoes, or hurricanes, but what if it does?  Plan ahead, just in case.

Sometimes pilots have to divert and get the plane on the ground quickly to handle an emergency.  That does not mean it is the end of the flight, though you will likely have a change of airplanes and/or crew.  But once that is completed, your flight will likely continue to its destination.

You may encounter major problems in your financial picture along your journey as well, causing a divert of sorts.  It may require you to change your thinking, re-diversify your investments, or completely rework your plan altogether.  Just be ready to get together with your team and do what is necessary when a major problem hits, and remember that while you may have to delay arrival a bit, you will get their if you plan accordingly.

Now that we are well under way along our route, we have to begin preparations for our arrival.  Yes, more planning is involved, frankly it doesn't end until we have left the aircraft.  As we get closer to the airport, we are setting up for our landing and arrival at our destination.  The next post will cover your financial approach.