While Americans have been concerned about saving for retirement, many among them have not yet begun to focus on total retirement security. Mention retirement security, and your client’s thoughts turn to accumulation.
Will they have “enough” money to retire comfortably? How much is “enough”? What rate of spend-down can they safely take? What tax bracket will they be in? What will they really need to live on?
What gets lost in this myriad of questions is the much broader concept of living a secure retirement: giving our clients the confidence that they will have their financial house in order and will be able to accomplish their financial goals for themselves, their families and communities.
The concept of accumulating funds for retirement is fairly straightforward. Save “enough” money, earn “enough” of a return on that money, minimize the impact of taxes on the accumulation process, then decide just how much can be safely spent each year and still have a reasonable chance of not outliving one’s assets.
For those clients who understand the greater context of retirement security, they can start planning now for their golden years. With careful attention to their overall financial plan, retirees will be able to spend even more of their hard-earned dollars to enjoy retirement, while also preparing to leave a financial legacy for generations to come.
Let’s look at a few examples of priorities that consumers commonly highlight as they assess a financial legacy:
? Provide for a grandchild’s education and overall welfare;
? Secure a financial future for a special needs child, grandchild, niece or nephew;
? Donate to a favorite charity or non-profit organization.