The Retirement Readiness Process
I first met David and Emily a few years ago, we talked about working together on a retirement plan but life got in the way and then the pandemic….
Now David and Emily were tip-toeing back into the world: an outdoor dinner with friends, visiting their new grandchild in Austin, things were looking better than they had in a long while. So why were they so stressed out?
Back in my office, Emily brought out the budget spreadsheet from 3 years ago. All the old questions she had when she started this project came flooding back to her. Would we have enough money to retire comfortably? Are our investments safe? Are we taking too much risk? What about inflation? Oh, now she remembered why she put this file away three years ago, it was too painful, it gave her a headache.
I reminded them that they were fortunate, they both continued working from home. They were excellent savers and had accumulated over $1,000,000. David had a good pension and they had 5 or 6 years to go until retirement. If they continued to save and invest prudently, money would not be the problem.
We went over our retirement readiness process to answer all of their questions and eliminate stress and doubt.
The Retirement Readiness Process
Step 1: Map your Journey
Yogi Berra famously said, “ If you don't know where you are going you might wind up someplace else.” We began by setting reasonable goals. David and Emily had a few big trips they wanted to take, and Emily wanted to convert the garage into a studio. David wanted to spend the worst parts of the winter down south. They both wanted to help the kids get established. We put a price tag on each of these goals and started matching assets with goals until we knew where all the money would come from.
Step 2: Funding the Journey
Next, we got clear on living expenses and created an investment plan that delivered an automatic deposit into their checking account just like when they were paid a salary. We took into account increases in the cost of living and required distributions so that there will be no surprises.
Step 3: Ongoing support: Where preparation meets opportunity
Situations change, opportunities arise. It pays to be prepared, that's why we meet regularly throughout the year. When the perfect cottage near the beach became available David and Emily were able to act quickly and buy it before it went on the market. Now, we stay at their side and pay attention to the details so they don’t have to.
Ready for Retirement?
Use our Retirement Readiness Calculator to see how close you are to your goals.
