What Money Can’t Buy

Retirement planning isn’t just about money, it’s about the things money cannot buy. In order to know how much money you will need to set aside to retire comfortably, you will need to have a feel for your hopes and dreams and goals.

Does your vision of retirement include:

• Starting a business                               • Playing golf, go fishing

• Working a part-time job       • Vacation home

• Consulting                                             • Remodeling your home

• Moving and/or relocating     • Traveling abroad

• Grandchildren’s education    • Going back to school

• Volunteer work                     •Time with kids/ grandkids

• New hobby                                            • Leaving an inheritance

Once you have a clear understanding of what you envision your retirement to look like, then we can begin to help you with taking an inventory of all your assets, savings and investments.

Assets Inventory

No matter what your situation, an inventory of assets is one of the first steps to assemble the key pieces of information needed in creating a sustainable retirement income plan. Included in that inventory are such things as:

       • 401(k), 403(b) or 457 plan       • IRAs/Retirement plans

       • Insurance/Annuities             • Stocks/Bonds

       • Mutual Funds                        • CDs/Money Market

       • Real estate/REITs                                  • Checking/Savings

       • Investment property       • Options/Commodities

       • Managed Accounts          • Safety Deposit box

       • Personal property            • Business interests

       • Debt owed to you                       •Employer-sponsored retirement plans

Once we have a clear understanding of your assets, savings and investments, then it is time to calculate your expenses at retirement. Some expenses may increase in retirement due to inflation, while other expenses may decrease due to medical advancements and new technology. There are many questions about your retirement that need to be answered to get a handle on what your expenses will be in retirement.

Calculate Your Expenses

When you plan to retire, where you plan to live, and how you plan to spend your time will all have an impact on how much you will need to save to fund the retirement you envision.

Here are some areas of focus:

• Housing                                                • Food

• Transportation                     • Clothing/personal items

• Healthcare                                             • Entertainment

• Travel                                    • Misc. expenses

Having a clear understanding of what your expenses will be is important to know so we can determine what how much income you’ll need when it comes time for retirement.

Total Income from All Sources

Most working Americans have only one source of steady income—their job. In retirement, you are likely to have a variety of income streams.

When it comes to creating your retirement income, we will look at all sources of income, which we will discuss further in this book, but include the following:

• Social Security    •Employer-Sponsored Retirement Accounts

• Roth IRA Accounts                                • Pensions

• Stocks                                   • Mutual Funds

• Bonds & Bond Funds                            • Savings Accounts

• Money Market Funds                             • CDs

• Full & Part-time Work                          • Rent & Royalties

• Inheritance                                           • Annuities

• Insurance                                              • Home Equity

Having a clear understanding of what your income will be helps determine what your surplus will be and what potential retirement shortfalls you may face.

Surplus and Shortfalls

 One of the biggest risks to a comfortable retirement is running out of money too soon. After taking everything into account, we will be able to tell you if you will be able to make it to the finish line. You will know if your retirement income plan is sustainable.

We can help you determine if you have a projected shortfall or surplus at retirement, and if a shortfall, how big. You will also know approximately how long your current retirement savings will last. And, once we have an idea just how big your shortfall is, we can explore various options and tradeoffs. 

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