Don't Run Out of Money: How to Plan and Invest for Retirement Success by Seibel David

Don't Run Out of Money: How to Plan and Invest for Retirement Success by Seibel David

Author:Seibel, David [Seibel, David]
Language: eng
Format: epub
Publisher: Sancus Press
Published: 2019-08-22T16:00:00+00:00


C HAPTER 8

The Financial Planning Process for Retirement

The major problem with many of the financial plans I review is they are long on pretty graphs and charts and short on detail. Financial planning is an ongoing process, not a one-time event. The result of your planning efforts must be more than just a stack of paper.

Most planning usually focusses on just two points in time: the day you retire and your life expectancy. Forgetting for a moment the questionable validity of the methods used to perform the analysis, looking at just two points in time can serve no purpose in helping your transition into retirement.

Remember, your financial plan should serve as your roadmap from where you are today to not only the day you retire but all the way through retirement. It should be able to show you not just where you’re going, but where you are, or should be, at any point along the journey. How else can you know if you’re on track?

Having a plan that only shows a midpoint (retirement) and an endpoint (life expectancy) would be like taking a trip with a map that had the place you wanted to go but contained no roads or other details. If you were driving from New Jersey to California, you’d probably want some indication you were heading in the wrong direction before you saw the Welcome to Florida sign. That’s just not possible if your map doesn’t contain the data.

Retirement will be a major change in your life. My objective is to ensure that your transition to retirement, from a financial perspective, will be as simple, comfortable, and as stress free as possible.

As I’ve discussed, the planning process is a bit more involved than answering a few questions and waiting for a report. While it should require some effort on your part, this shouldn’t be a difficult exercise. In this chapter, I will walk you through the process I use with the families I work with, step-by-step.

Step 1: The Conversation

As I touched on in the previous chapter, the starting point for your financial planning experience must be a conversation with your spouse/partner, if you have one, to agree on your retirement goals. It is imperative that you start the process with a common destination - you must start on the same page.

Since most couples usually don’t have the conversation before our first meeting, I will spend time during Discovery - my first meeting with a family - to go over the importance of the conversation and coach them through what they need to accomplish. This conversation must be about the specifics of how you want to live your retirement and the things you want to accomplish. It should not be a conversation about investments, market strategies, financial products, or anything else not related to your retirement goals. There will be plenty of time for those discussions later.

For simplicity and clarity, I will have the couple separate the conversation into three categories:

Intermediate goals, retirement lifestyle, and ultimate goals and desires.



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