As much as one might like it to be simple, retirement planning isn’t as easy as accumulating $1 million and riding off into the sunset. It takes much more thought, and it’s not one size fits all.
You wouldn’t hop in a car and start driving without knowing the final destination. Likewise, you can’t set a specific amount of money you need to retire without considering your goals for retirement. You need to know where you are going so you can figure out how to get there.
That’s why we focus on goals-based retirement planning. Understanding what’s important to our clients allows us to create a customized financial roadmap that helps them reach their dreams.
We often hear questions like, “How much do I need to save for retirement?” The answer is always that it depends. For example, if you’re someone who wants to travel the world at age 55, you’re probably going to need more than $1 million. However, if you’re someone who wants to stay home and work in your garden, $1 million might just do it for you. Everybody is different. You have to know your goals.
What is Goals-Based Retirement Planning?
Goals-based retirement planning creates a plan with a distinct and achievable target. Goals are individualized for each person and their desired lifestyle. The entire plan is measurable, and goals can be adjusted up or down to work in unison with your life.
Your goals are going to naturally shift and change as you age and go through seasons of life — even in retirement, your goals will change! You may take a trip and fall in love with international travel. Or, say you want to buy a second home, we’ll need to make a change to account for that. You never know what life will bring, and you need to have a plan that can adjust and pivot toward your constantly changing goals.
We also use the same process for pre-retirement goals like paying down student loan debt, purchasing a new car or buying your first home.
We focus on building deeper relationships with our clients, rather than relying on products. Throughout the life of the client relationship, we are constantly working and reworking their roadmap and investments to achieve their goals.
What Makes Goals-Based Retirement Planning Unique?
We believe you need to know someone to understand what is best for their money. We get to know what each and every one of our clients is about before making any investment suggestions.
A client’s goals drive everything we do, not the investments. If we create their plan and find out they have a high probability of success, we don’t need to be as aggressive with the investments. This is contrary to most financial advisors in the industry who create a plan centered around an investment portfolio. We believe it’s better to plan with goals in mind rather than returns.
While goals-based planning isn’t dependent on market return, each year the plan is updated, and its performance is gauged against the roadmap we created with our clients. For example, a negative return may on the surface seem like a bad thing, but it can also be seen as an opportunity to buy more shares “on sale,” which could be a good thing for the long-term growth and long-term goals.
The results of the plan determine the amount of risk needed. Too much or too little risk will cause the success rate to change. We use the planning process to determine what level of risk is required. This guides our decisions on where to invest and how much you will need in retirement to do the things you want to do.
By establishing short and long-term goals and creating a roadmap to achieve them, our clients have clear milestones to help us pick the right financial strategies for them. Regardless of where you are in life, it’s important to have a financial plan that can grow and adapt with you. Whether you want to help your kids save for college, build a legacy for your grandchildren or enjoy a long, happy retirement, we’re here to support your goals every step of the way.
If you’re interested in learning more about how to put your own goals and dreams into action, schedule a meeting with our team.