Over five years have passed since I first joined LeConte. I’ve engaged with hundreds of folks on all things financial. One question has remained consistent across prospects and clients who have retirement on their mind: “Do I have enough?”
A Google search of this question suggests answers. Here are a few:
- $1 million.
- Approximately 80% of your annual pre-retirement income.
- 10x your salary by age 67.
- 12x your pre-retirement salary.
- Use the 4% rule.
A report suggested that American’s will need $1.25 million to have enough throughout retirement. Here are the report highlights:
- 43% of Americans do not expect to be financial ready when retirement should occur for them.
- 45% don’t expect Social Security benefits to stick around.
- Americans extended their working years to 64 from 62.6 last year.
- 33% predict they have a 50% chance to outlive their savings.
- 25% plan to retire later than they had anticipated.
If you’re like me, sometimes statistics can be a head scratcher. I think about the data, how it was collected and if it truly does represent the population the reporter says it does. My conclusion typically finds flaws in the data; hence, I shouldn’t put too much emphasis on the findings. Don’t get me wrong, we can glean some information from the report and the Google search, but these bullet point lists are unrefined noise. There is no one-size-fits-all solution, as each individual and household is different. We all have different starting points, goals, resources, and risk tolerances.
Our solution to refining this financial noise is called Purpose Built Planning©. We built it around three financial pillars:
Purpose Built Planning© examines your financial condition from a 360-degree view that encapsulates the 7-Step CFP® financial planning process. It layers Financial Planning, Investment Management and Tax expertise (analysis, preparation, and filing). See our process below.
1. Our team wants to understand the steps you’ve already taken.
We ask questions about how you got to where you are, specifically personally and financially.
2. Initiate Purpose Built Planning and make it personal.
Our team gathers qualitative and quantitative information, so we have a comprehensive picture of your situation. This also includes your personal values and attitude towards money, family, health, goals, risk tolerance income, expenses, assets, liabilities, investment experiences, estate documentation, and more. We obtain the information required to developing a comprehensive plan that maximizes your chance of achieving your goals. Quality inputs deliver refined output.
3. Analyze the path the client is on and identify areas of alternative action.
Through a series of structured meetings, our team collects all the information we need to analyze the path that you are currently on. Our planning experts then analyze your course of action through a cash-flow analysis and our goals-based approach. We conduct a predictive risk assessment to identify if your current choices should be altered to improve your odds of success.
4. Our team presents alternative courses of action, so you can influence the route to your desired financial destination.
If you want to be aggressive, we can show you how to do it the right way. If you want a less stressful roadmap, we will build it out for you.
5. Win the Future. Our team schedules a WTF meeting to present the plan and layout the steps to the client.
During the WTF meeting, our team will present the plan. We will describe in detail what the client is currently doing, what we believe the alternative course(s) should be and we’ll discuss any roadblocks that may occur on the path to implementing the plan. Implementation of the plan then occurs by the client and LWM team.
6. Ongoing Reviews and adjustments.
Our team routinely monitors our client’s plan as life events occur. We schedule regular reviews based on the client’s needs. We then update the charted course as necessary.
The result is a specific plan for how you will reach your goals and how your portfolio should be allocated now and when you retire. Whether accounts are held at our firm, or externally like your company 401K, our approach is comprehensive and highly refined to deliver the best results to you.
Why rely on Google for retirement guidance when you can have your own Purpose Built plan? Our team answers the question, “Do I have enough?” and so many more as life occurs. If you or someone you know could benefit from our services, contact us here or give us a call (865) 379-8200.