Chapter 24: Tying It All Together

The following is an excerpt from

Big Picture Retirement Planning

A BIRD’S EYE VIEW FROM 3,000 FEET
Les Goldstein, M.B.A.

Personal Financial Strategies, Inc. PARK RIDGE, ILLINOIS

Copyright © 2018 by Les Goldstein.

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Big Picture Retirement Planning/ Les Goldstein. —1st ed.
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CHAPTER 24

Tying It All Together

 

As we have frequently shared throughout this book, for almost every PFS client, retirement income gap planning (RIG planning) is the number one concern, ahead of all other financial planning issues. The reason for this is very simple. During retirement, we all have the desire to continue to maintain our desired lifestyle. That is, our portfolio income, plus pensions and Social Security income, have to replace our job income. This is easy enough to understand, but hard to accomplish. In the words of Robert Hart, “retirement income gap planning requires a different set of tools than the accumulation phase of investing and saving.”

Once the PFS team has completed all the work required for each comprehensive financial planning client, we always conduct what I call our “Ribbon and Bow” meeting. That is, we make sure that all details are tied together in a nice and pretty way that is easy for every client to understand. This meeting always includes the following components:

  • Retirement income gap analysis to make sure needs, wants, and wishes are met to the extent possible.
  • Retirement income sources review: which accounts will be accessed first, next, and last? The potential income tax ramifications of each action.
  • Pension and Social Security strategy review.
  • 401(k), 403(b), and Roth and Roth conversion review.
  • Risk tolerance actual vs. portfolio.
  • Establishment of rainy day fund.
  • Land mine review, including long-term care insurance plan.
  • Legacy plan for children and grandchildren.
  • Comprehensive estate plan.
  • “What’s missing?” conversation.

And, because life happens, we make sure to meet with each fi-nancial planning client at least once a year to learn if anything needs to be updated. Do this yourself, as it will make things much easier to always be prepared for the “suddenlys” of life.

 


Important Disclosures For This Chapter

It is important to understand that everyone’s situation is unique and not all strategies and methods mentioned in this book may be appropriate or suitable for every individual. We suggest that you consult fully with your financial, tax, and legal advisors on pursuing a strategy that is uniquely tailored to your particular needs.
All information included is from sources believed to be accurate as of the writing of this book. Please conduct your own long-term care insurance planning review with qualified professionals before making your own decisions. Not everyone will qualify for insurance-based products, such as long-term care and life insurance. The cost of these products is in part a function of your individual health profile.