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Retirement Planning

Retirement planning today has taken on many new dimensions that never had to be considered by earlier generations. Some of these new dimensions include: 

  • Longevity Risk - People are living longer. A person who turns 65 today should expect to live as many as 20-30 years in retirement as compared to a retiree in 1950 who lived, on average, an additional 15 years.  Longer life spans have created a number of new issues that need to be taken into consideration when planning for retirement.
  • Reduction In Income Sources - Earlier generations had three income sources (pension, personal investments, and social security) available to them in retirement. Many companies have gone away from offering pension plans and pushed the retirement responsibility onto the employee. This new paradigm makes it every more important to plan and prepare for a successful retirement.
  • Interest Rate/Inflation Risk - We've experienced a declining interest rate environment for over 30 years. Today's retirees need to prepare for rising interest rates and inflation. 
  • Healthcare Cost - Healthcare costs will continue to rise. We need to prepare for double digit growth in future healthcare expenses. 
  • Taxes - Our counties obligations are underfunded, it's safe to assume taxes will increase. 

How Thrive Can Help

The first step in tackling retirement planning and its associated risk is to prepare. We utilize forecasting tools to help our clients model their retirement. When it comes to adjustments our focus is always on what you can control. Some of these adjustments may include:

  • Save more
  • Spend less
  • Work longer
  • Leave less to loved ones or charity 
  • Take on more or less investment risk

These planning sessions are interactive and allow our clients to see in real-time how these adjustments affect their long-term success. With a plan established, we pride ourselves in working with our clients to ensure they implement what we have discuss. You will never be handed a plan and told "have at it". In fact, we often take on the role of being a coach to make sure our clients implement their plan. A financial plan is not static; it cannot be left on a shelf. We run our client's plans on an annual basis to ensure they remain on path.

In some cases, our clients are surprised to learn they are on path and can do more with their resources. This allows them to dream a little and live a more fruitful financial life. Retirement planning is all about marrying the things that matter to you and your resources. Creating an equilibrium between the two is paramount. If an imbalance exists, adjustments should be made.  

Lastly, whether we like it or not, we must accept that we have a partner in life in the form of the United States Government. Taxes will likely rise and tax management will play a crucial role in a successful retirement. We work with our clients to create a diverse set of investment buckets (after-tax, tax-deferred, and tax-free). This allows us to manage your taxes in retirement by deciding which bucket to draw from.

If you are ready to build a comprehensive retirement plan, please contact us today!

I'm Ready To Thrive