Several years ago, there was a frequently aired TV infomercial for a cooking or baking device. Throughout those 30 mind-numbing minutes they would repeat the saying; “Set it and forget it!”, over, and over again. Perhaps you recall seeing the infomercial I am referring to. Unfortunately, many financial professionals in our industry approach retirement income planning with a similar approach; set it and forget it.
At Master’s, we take the complete opposite approach to your retirement income planning. We believe an effective retirement income planning strategy absolutely requires active and ongoing monitoring, with adjustments being made throughout your lifetime. Think of our approach like running a marathon.
- Preparation and training – The parallel here is the years (preferably decades) of financial planning and investing that are so vital before making the decision to disengage from full-time employment and earnings. This phase also includes our pre-retirement analysis of whether your assets and sources of retirement income have a high probability of accomplishing your goals before you run the marathon called retirement.
- At the starting line – Congratulations! This is where your retirement income begins. We will have a comprehensive income strategy in place, built with consideration to all the variables we are aware of, at that time. You begin “the race” with confidence.
- Adjusting to risks and conditions (both personal and external) during the race – This is the part of retirement income planning that is so frequently ignored. Life happens! The investment markets over-perform, or under-perform, giving you either excess or a shortfall. Perhaps we experience higher than expected inflation causing your initial income need assumptions to require an adjustment. Changes in personal health for you, or your spouse, could change your financial needs dramatically. In our opinion, this phase of the retirement income marathon, between the starting line and finish line, is the most important. The constant monitoring and ongoing adjustments will give you the very best chance of enjoying a successful retirement income plan.
For those of you who are engaged in our Total Wealth Management planning services, Master’s Income Architecture has become a highly effective technology tool for not only creating a great retirement income plan, but more importantly, providing real-time monitoring and adjustments to your plan, whenever they are needed.
We enjoy the entire process of planning for your retirement income. Whether you are in the preparation and training stage, at the starting line, or somewhere in the process of running the marathon; let us know how we can help you finish the race successfully. We are here to help you succeed!