Retirement Planning   Services List

Definition:
The process of assessing our clients’ current financial situation to ensure that they will be able to maintain their lifestyle after they retire.

Benefits:
Peace of mind that your net worth will be able to support you during your retirement years.

Process:

• Assess current income needs.
• Project retirement income needs.
• Prepare personal financial statement.
• Evaluate composition of the assets.
• Develop an action plan to increase the value of each asset.
• Determine liquidity of assets and the timing of the liquidity to fulfill your retirement income needs.
• Evaluate action plans periodically.

Case Example:
A new client of ours had a goal of retiring in 15 years. Her liquid investments were $100,000. She was a 50% owner in a construction business and the value of her ownership interest was $1,000,000. Owing $500,000 on her home, she wanted to be mortgage free at retirement. Her annual salary was $200,000. We assessed that in order to pay off the 25-year mortgage in 15 years she would have to increase the principal payments by $920 a month. This would require a $22,000 increase in salary, which unfortunately the business could not handle. The question remained, how do we pay off the mortgage and increase her liquid investments? We focused on the source of her current income, which was the business. We discovered that the business was not as profitable as it could have been and decided to focus our efforts on increasing its profit and its value. The additional income required would be generated to retire the mortgage and at the same time increase the profitability of the business. We also worked on a succession plan to increase the liquidity and value of the business in order for her to be in a position to sell it and generate sufficient cash to support her lifestyle during retirement. Analyzing her situation, we helped her position herself to take advantage of the best tax treatments if she chooses to sell the business in the future.