Retirement planning refers to the allocation of finances for retirement. The goal of retirement planning is to achieve financial independence, so that the need to be gainfully employed is optional rather than a necessity.
Financial advisers, whose compensation is either fee-based or contingent on product sale, are available to help clients develop retirement plans. Or, consumers can now elect a do-it-yourself approach, using, for example, web-based resources.
Financial planning may include investments (e.g., stocks, bonds, mutual funds); real estate, including reverse mortgages; debt; taxes; cash flow (income and expense) analysis; insurance, including long-term care insurance; and defined benefits (e.g., social security, traditional pensions).
Retirement planning can be complicated. When in doubt, consult a professional.