For most people, retirement means financial freedom. Some plan for a retirement free of employment. Others wish to work part-time; sometimes in their field or, perhaps, in something entirely new. The goal is financial freedom.
What we do: Our goal with retirement planning is to help you envision what this time might look like. Then, we begin to quantify what income and assets are required to fund a secure retirement. Finally, we can then determine whether you are "on track" towards building the required nest egg for full security. If there is a shortfall, we discuss options: saving more, working longer or revising goals. We employ computer projections to help with the decision-making.
We use this software periodically during retirement to avoid straying from a secure future. Excessive or unexpected spending, inflation and periods of low investment returns can adversely affect a plan.
Of course, mapping out a plan for retirement is only part of the story. We need to find the right balance between building a secure retirement and achieving those near-term goals such as remodeling, travel, hobbies, college and a vacation home. Not to mention living comfortably today. A plan must allocate limited resources towards all of these ends.
Why we do it: Awareness! Having a reliable assessment of financial security is vital. You need to know if you are building wealth rapidly enough. Also, if you are retired and have surpassed your funding goals, this too is important to recognize. You may then be able to consider increased spending, investing more conservatively, or beginning a gifting program.
What we don't do: We do not stop our planning at retirement. The question "Can I afford to retire?" is the most critical pre-retirement question but it's also an ongoing question. If security is later jeopardized, we want to recognize this and take action. If security, however, is stronger than anticipated, recognition is just as important.
MoneyGuidePro software has been a part of our process since 2004.
Social Security planning, especially when coordinating benefits for a husband & wife, can enhance a retirement plan.
Teacher? Administrator? If so, familiarity with the State Teachers Retirement System can be an important part of the retirement planning process.
Professor? State employee? Peace Officer? Firefighter? If so, familiarity with the Public Employees Retirement System can be an important part of the retirement planning process.