Conceptually, retirement planning is about answering these core questions:
- When can I retire with high confidence of success?
- What are the key risks?
- How do I create sustainable income once I stop working?
Strategically, retirement planning is about coordinating one’s interrelated financial elements to optimize them in a way that is consistent with your personal goals and circumstances.
A good metaphor is baking a cake. Most cakes are made with the same foundational ingredients. But the final product can vary significantly depending on how much of each ingredient is used and when (timing can be important). As individuals, we all have different preferences for the type of “cake” we want. Additionally, we all have varying amounts of ingredients to work with. Our job, as financial planners, is to figure out the right combination of “ingredients” and when to use them in order to create your “cake” in the most efficient way.
Our retirement plans include:
- A strategy to generate and coordinate sustainable income from your investments and fixed income sources like Social Security or pension plans.
- Proactive planning to minimize taxes; and
- An investment strategy that is coordinated with the income plan and tax considerations.