The Most Important Ratio in HNW Retirement Planning

“So we go through the order of their priorities and then try to identify where retirement planning fits into those priorities.”

Attardo also runs projections to see how their portfolio would hold up under various scenarios. She usually starts with what she calls “the dream scenario,” where a client might want to retire in two years, own a second home and travel. If they’re off on the projection, she suggests that maybe they get more aggressive with their allocations, or maybe they work one extra year. It does them no good if she says they’re off in saving, but then doesn’t offer solutions, she added.

As mentioned, for high-net-worth clients in particular, it’s all about their lifestyle relative to their asset base.

“Often, they will come to me and say, ‘Barbara, something doesn’t feel right. Come into the weeds with me and help me figure it out,” which I do. There’s no judgment, we create an environment where they feel safe to ask questions. We want to look at the entire picture and every possible source of income—whether it be deferred comp, stock options, an inheritance they might receive, a gift they’re receiving from their parents, pensions (although we don’t see as many of those anymore) or anything else.”

She’ll also “practice retirement” with her clients, suggesting that they cut their spending by X amount, and then “see how it goes.” Obviously, she concluded, the sooner they do something like that, the better, as it gives her and her clients time to adjust.

“Meetings go easier if the numbers are good, but if not, we always strive to present it in a way that gives them hope.”

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Barbara Attardo will be a speaker at this year’s Think Retirement Income Conference in Boston on Oct. 10 and 11. For more information and a list of other speakers, please visit www.thinkretirementincome.com.