What’s your Number?

There has been an ongoing discussion for a number of years, the discussion has been driving with the idea that each family or person should know how much they need in order to retire. Seems simple enough…. You work for 30 years have your number saved; pay off the home loan and bingo you retire for the next 30 years!

What happens when you retire in the year, 2000 or 2008? Then what?

The good news is, the Financial Planning is now a little more sophisticated, it is software based and not just this binder that sits on the shelf that you never look at. As with all technology, financial planning has advanced quite a bit and offers many great uses for clients in real time, even during the bottoming of markets.

We use a company called eMoney Advisor, for clients we are able to aggregate all financial assets and liabilities regardless of where they are held, into a single client Website or Mobile APP (256 bit encrypted), we also digitize client passports in case they are on holiday and lost, estate plan and tax statement’s for future uses. We also assist clients with digitizing photos of the home, appraisals ect in case there is damage to the home. So, as you can see, Financial Planning has evolved a little bit. And yes, planning still involves cash flow analysis, retirement planning, education planning and many other calculations that each family may need to know along with estate planning flow charts.

So with all of this, and the basic idea that if you want to stop working at some point and Retire it might be a good idea to know ”what’s your Number.”  A recent article in Forbes titled “10 Reasons Why Financial Plans aren’t Just for the 1%” click here the Contributing writer Laura Shin referenced a statistic that only 31% of Financial Decision Makers have a comprehensive financial plan?

Why is this?

Is it because of 2000 and 2008 that the other 69% do not believe in the numbers? Is it because they feel that they are nowhere close to what they need in order to calculate retirement? Is there not any value in having a plan?

Experience tells me it’s a few things, often in combination-

1. Often times it’s not about the Financial Plan as it’s more about the Estate Plan and words often spoken are “we need to update our will”- so it begins with mortality issues or other legacy family issues that will be addressed or brought up during the Planning Process.
2. Have we, as Planning Professionals really done a good job of “marketing” to a wider audience?
3. Planners do not always use planning in a way that is dynamic, and clients may end up feeling that they are not getting the benefits that they were “sold”.
4. Clients sometimes just do not want to know the truth, and that is what the real number is for retirement, or simple do not want to address issues.

So there you go, it’s a short list, I am sure there is other reasons that could be added, so I call out to the 69% who do not have a Comprehensive Financial Plan to come forward, come forward with confidence and ask questions, you will learn a lot more then you think, and this will allow us to articulate why you need a plan, and the benefits for your family and the next generation.

Thanks for reading.

Financial Planning offered through LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.