The (Smaller) Number

Here are some things you should consider, especially if you were planning to retire in the next five years or so:

• First on the list, of course, is your “number.” We don’t know how long this soon-to-be-recession is going to last, but if your retirement savings are lower than expected for a year or two, how will that affect your retirement income, and are you and your significant other willing to accept a correspondingly less lavish lifestyle?
• If you’re not, then the first solution would be to lengthen your time horizon. For some advisors I know, the prospect of working longer is more of a blessing than a problem. They were going to have to be dragged out of the office when the time came, anyway. Now they have a hard-to-argue-with excuse for their spouse as to why they have to keep going to the office for another couple of years.
• The other option would be for advisors to simply work harder now. As they’ve approached retirement age, some advisors have been content to let their practices coast along at the same revenue level, and even cut back their working hours a bit. Now, faced with the prospect of having to work longer, they can opt to get back into growth mode, increasing practice revenues and value to get their financial plan back on track.
• Finally, consider reviewing your own financial plan as an excellent way to connect with your clients. There’s no better way to motive them to reassess their financial situations than the words: “Well, I just reviewed my own financial plan and…”