Part 2 of a 3 part series of articles on the value of retirement evaluations
The Truth Behind Retirement Evaluations
How do WE Maximize the Probability of SUCCESS in your RETIREMENT?
Years ago, when we began offering our “complimentary Retirement Review” sessions for new prospective clients we were amazed to find that most individuals had never run a retirement projection to assess where they were in regards to their retirement plan. Most people spent more time planning for their summer vacations than they did for their retirement. Yes, people put money into their 401(k), IRA or whatever retirement plan they have to build money for retirement, but the vast majority have never run a retirement projection to view whether they will have enough money to last throughout their retirement.
Whether you manage your own retirement savings or rely on an advisor, it’s essential as you approach retirement that you prepare an income projection to see if what you have for income sources will last a lifetime. With inflation, market volatility, longer life spans, as well as many other factors, it’s imperative to complete a comprehensive Retirement Review.
Biggest Fear for Retirees
You wouldn’t plan a trip across the country without a map or a navigation system to help guide you to your destination. Just as you shouldn’t plan to retire at some point in the near future without a clear plan to assure you will have “enough” to provide for retirement for 20, 30 or more years. A recent research report conducted by Allianz Financial showed that the number one fear of retirees is running out of money before they pass away. Retirees feared running out of money in retirement more than having bad health or even death, yet the vast majority of retirees have never completed a retirement projection to assess their current situation, nor have they developed a retirement income strategy to assure, with the highest probability, that their money will last a lifetime.
We’ve heard from prospective clients that their advisor or they themselves have “guesstimated” what they have available for retirement income, assuming they have enough, without creating a formal and accurate projection. This is the very reason most retirees’ biggest fear is outliving their income. Never having developed a retirement projection leads to retirement uncertainty which leads to fear of the unknown.
Complimentary Retirement Review Leads to Retirement Clarity
Our advisors’ process with every prospective client is to first complete a “current” Retirement Income Projection Analysis (RIPA) to assess where they are today with regards to their retirement plan. After this initial retirement assessment, we then discuss any adjustments necessary (based upon the most recent retirement research) and view the proposed retirement projection to see how the changes will affect the retirement outcome. Next, we review the current vs. proposed retirement projection to assess any changes necessary to improve the retirement outcome.
Once we complete the retirement planning process and the proper adjustments are made, individuals have a new understanding of their retirement situation and feel empowered with this realization. Whether they need to save more, make some personal changes or just sit tight on what they’ve already accumulated, there’s always a sense of relief that the unknown is now known and they can move forward with greater confidence. It’s truly gratifying to us when new clients tell us how good they feel with their post-income projection analysis and their new found understanding of “what” their plan is and “why” they’re doing it. It’s truly a tremendous feeling for them, and for us, as their retirement advisors!
If you have any questions about your retirement plan or simply want to have a conversation about what you’re currently doing, we implore you to take advantage of our complimentary Retirement Review. We can tell you with certainty that the individuals that have taken advantage of this offer have been rewarded with new found clarity and confidence. The truth is always empowering.
“We believe retirees deserve an investment and income planning experience that is founded on long-term, research and evidence-based results NOT rhetoric. And we’re committed to providing this for them.” -Her Retirement
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Part 3 of this series coming next: The Value of a Retirement Portfolio Review