Crafting a Financial Plan Uniquely Designed Just For You.
Based on experience with our clients, we have developed a process that will help lead you through the six stages of retirement planning. Our advisors follow the stages to develop your personal plan which can help guide you toward your retirement goals in the future.
Establish and Define the Client-Advisor Relationship
We begin by educating clients about retirement planning and income distribution challenges, and discuss how we can work together to develop and implement your retirement plan. We need to understand your financial goals, in order to help you define your financial future.
Gather Client Data, Including Goals and Expectations
The more detailed information we can obtain, the more customized and tailored the retirement plan can be. A sampling of the types of information include:
Basic information and general assumptions: name, date of birth, family members, taxes, and health status
Projected retirement expenses: “Basic Needs” (e.g., food, shelter, clothing). “Lifestyle Wants” (e.g., travel, entertainment), “Specific Goals” (e.g., college for grandchildren, purchase of a vacation home), and desired “Legacy” for heirs
Resources: income from pension, Social Security, rental income, etc., the tax type of each resource, and availability of insurance (life, long-term care or disability income)
Other assumptions: risk tolerance, anticipated rate of return, inflation assumptions, and length of projections
Process and Analyze Information to Determine Retirement Needs
We analyze the gathered data to determine to what level you are meeting your retirement goals with your current strategy. If a gap exists, we offer straight line “what if” alternatives such as retire later, reduce spending, increase returns, save more, etc. If you are married, we then rerun the analysis assuming the death of either spouse in the short term. Finally, we stress test the current strategy to determine the probability of meeting your needs and goals with your current investment allocation.
Develop and Present Financial Planning Recommendations and/or Alternatives
Based on your input and our analysis, we develop a retirement plan. Our first priority is to plan for your Basic Needs during your lifetime. After your Basic Needs are allocated, we then offer you a variety of suggestions for meeting your Lifestyle Wants, your Specific Goals and your Legacy desires. Once these general options have been considered and finalized, we again stress test the plan to help determine if your portfolio is on track to help meet your needs and goals. This is the most important stage — where the planning takes shape.
Implement the Financial Plan Recommendations
Once you have accepted the general solutions outlined in the retirement plan, we present the specific recommendations and products that can help meet your needs, and discuss the pros, cons, risks and costs for each recommended alternative. This helps you to make an informed decision.
Review the Financial Plan Recommendations
Many factors within and outside of your control can impact the viability of your financial plan in the future — a life event, unexpected expenses or income, a change in taxes, etc. We meet with you on a regular basis to check the status of the financial plan by comparing actual results to initial assumptions and use this analysis to determine if adjustments need to be made.