Retirment Planning

When we talk about retirement planning, what is our focus?
First we must establish our age of retirement (time horizon to reach there), second the resources we have. Thirdly is our retirement lifestyle.
By clearly understand our current situation, than we could understand whether we can achieve our future retirement goal or not.
For resources, we have two major categories, firstly is the existing what we have? It classified as physical asset that we already accumulate such as properties, cash, equity asset and so on. Another one is the ability we equipped. It included earning power, earning capability, professional skill and others. Secondly, is the future asset we going to accumulate. It included our monthly take home income. Future potential income or asset inherit ate.
After that, we should go to risk profile test. I normally separate it to two tests. The first one is the behavioral risk tolerance. It means, up to what extend our emotional can take it. Like if market fall down 20% or 30% within short time period, we can take it or not? Another test is the risk profile on personal background which measures our physical capability to take risk. Like, a single young income earner and another with full of family commitment guy may have different risk tolerance.
Above process is taking the longest time in investment planning. Because we may do a lot of adjustment on our RISK Tolerance, Time horizon and lifestyle “retune” to reality.
Anyway, above retirement planning normally go to constant income earner like employee who not have much resource and try to accumulate higher fund in long term. For those who have sufficient resources in hand, their planning may different with above people.
Bear in mind, we not necessary to take additional risk if we not need.