As financial professionals, our job isn’t to offer basic advice that can be found online in thousands of different places. Instead, we provide value by introducing the subjects our clients are normally too scared to consider. Some clients actively avoid all retirement planning because they’re worried about what might come up when they start digging.
Options for Prospective Retirees
As financial professionals, we have a responsibility to help clients get their retirement plans in order. Some people dread this process, so it’s important they know that their imagination is often more dramatic than the truth.
To start, they need to think about their current lifestyle as well as the lifestyle they desire during retirement. What’s more, we need to ask where they invest and the required cash flow in retirement. From here, you can work your magic and try to help.
What if the picture is a bleak one? Well, they shouldn’t just give up and assume that a dream retirement is out of the question. Instead, suggest the following options:
1. Reducing Required Income in Retirement – First and foremost, could they reduce the amount of income they need in retirement? We wouldn’t want anybody to forgo a dream retirement, but is there room for movement in the lifestyle? For example, even a switch from a private golf course to a public course can make a difference. After this, it could be fewer meals out and two vacations per year rather than three. Maybe a couple could sell one car?
2. Working Longer – For those who have plans to retire at 65, they forget that this could mean 20, 25, or even 30 years in retirement. By working slightly longer, they don’t need to save as much for retirement, and their Social Security benefit also increases. All assets grow, and they get the retirement they desire.
We know that most people will frown at this suggestion initially. However, working to 70 could still mean two decades in retirement and plenty of time for vacations without having to pull assets before they have a chance to grow properly.
3. Saving More – Easier said than done, but some people can save significantly more money while working just by sitting down and planning their finances a little better. If retirement plans are inflexible, they can achieve the same thing by saving more intensely during the working years. Tips for saving more include:
• Turning a side business into something more.
• Cutting back on their existing lifestyle.
• Putting more into a tax-deferred account.
4. Moving Location – This is a big consideration, but your client wouldn’t be the first person to move for retirement purposes. Just because they work up north now, this doesn’t mean they can’t enjoy the lower cost of living in North Carolina, Florida, and others in the future. Did you know that some states have more favorable tax regulations?
5. Considering Inheritance – Although more of a morbid one, some clients neglect the fact that they could be in for a healthy inheritance package from a parent or relative. Of course, it’s important to be careful when planning because we can’t guarantee a specific amount. If parents need lots of healthcare in the final years, this drains a savings account significantly.
In the past, plenty of wealthy parents have sent cash gifts to their children to reduce their estate before passing away.
6. Altering Investments – Unfortunately, many people with an eye on retirement keep most savings in money funds. Is there a potential of increasing the risk slightly and investing in stocks? Just by rearranging investments, your client can increase their potential of returns in the time between now and retirement.
7. Working in Retirement – Again, this is something that some people will scoff at and ignore. Yet, more people are choosing to work in retirement. A part-time job gives your client more disposable income, reduces the need to save now, and keeps them physically and mentally healthy. In the future, many experts are predicting that most retirees will rely on three sources of income; investment income, Social Security or pension income, and another source (work, for many!).
8. Downsizing – In the past, it was traditional for parents to pass their home down to children. As time has gone on, this tradition has been eradicated because children are buying their own homes. Your client could sell the family home, downsize, and use these funds for retirement.
9. Selling Collectibles – Over the years, your client may have grown so accustomed to items in their home that they forget the value they hold. For instance, we’ve seen retirees sell huge collections of jewelry, watches, paintings, and other antiques. After sitting in the attic for many years, they finally prove useful by adding to retirement funds. With a professional appraisal, you’ll see how much these precious items are worth.
10. Selling Vacation Property – Does your client really need a second home in retirement? Will they save money by selling the vacation property and just paying for vacations as and when they are needed? Alternatively, some people choose to rent their vacation property out to make extra income in retirement.
11. Living in Elderly Community Developments – While some over-55 community developments allow residents to buy a property, others have rentals available. Either way, the client gets a property without having to worry about cleaning the windows, mowing the lawn, and other jobs. For those renting, property taxes also don’t apply.
12. Consolidating Assets – Does the client have assets that they could consolidate or consider when planning retirement? For many, this is a life insurance policy. For others, it’s a stock purchase plan at work, orphaned IRAs, or another source.
Clients can panic after assessing their retirement picture for the first time, but there are always options available to help.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.
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