Sage Rutty & Co., Inc. - Financial Planning

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HOME > FINANCIAL PLANNING > RETIREMENT PLANNING

What is retirement planning?
Retirement planning assists one in developing realistic long-term financial goals and a plan to accomplish those goals. Generally, the financial planner will develop a retirement plan through a financial analysis that determines whether current resources, in addition to savings and other future income sources, are adequate to meet retirement goals. This analysis basically attempts to answer the question, "Do I have enough to retire?" The planner then can build on the analysis to develop the retirement plan.

What are the steps involved in the financial analysis?

Determining asset base and its growth. One important step in determining whether one will "have enough to retire" is projecting the liquid or "spendable" assets a client will have at retirement and in the future. This projection usually takes into account historical rates of return of investment asset classes.
Determining cash flow needs during retirement. An examination of one’s current lifestyle is essential in this step. Current spending habits can then be projected out over a person’s life.
Determining whether one will have enough. The above projections can then be integrated to determine whether one will be able to live comfortably on one’s asset base plus growth based on certain assumptions.

What assumptions will be made?
Many assumptions are made in determining the outcome of the financial analysis. What will the rate of inflation be? How long will the client live? When will the client retire? Will investments return historical rates? All of these assumptions effect how the numbers projected in the analysis are calculated.

How can Sage Rutty help me with planning for my retirement?
Using the initial financial analysis as a road map, Sage Rutty financial planners can develop a plan to help you reach your long-term financial goals. The analysis will help to uncover hidden financial unknowns that the financial planner can help you to prepare for.