Retirement Planning

Are you one of the 10,000 who will retire today? Retirement planning can get you there.

Our “baby boomers” the ones who have lead, and defined our great country for the past 40 years are now re-defining their own, and very personal next chapter, retirement.

As with all transitions, they are not without challenges. In today’s post-recession economic environment and presented by a *Pew Research study Here outlines the MultiGenerational dilemma facing many boomers.  It seems that many boomers are faced with the responsibility of caring or supporting their children and parents when they are planning on retirement.

According to Pew, 57 Million Americans or 18.1% of our population will live in a MultiGenerational home; many will be in the age group of 85+. What we find fascinating is the 25-34 age group with the unemployment rate higher than the National Average according to The Bureau of Labor and Statistics at 6.6%, is as likely to be living with their parents as is the Grandparents. What is also compounding this challenge is the fact the fastest growing population in the United States is the 90+ age group this from a 2011 *Census Bureau report here, with modern medicine extending life; these challenges do not go away anytime soon.

It is no wonder that the boomer generation has been described as being anxious about retirement planning and not knowing where to begin. I have read many reports over the years that state, only about 30% of near retirees have a well thought-out, interactive financial plan but over 60% have financial worries. What has also been studied over the years is of the families who have a Financial Plan, some 80% + feel secure or good about their retirement finances.

Why the divergence? Typically, if there is no clarity or purpose around any issue this is when anxiety arises. Have you ever been lost on a road trip, driven to the “wrong” part of town and feel like you should have had better directions. This is similar to planning, you are going in a direction, and you know you are going to get there but if there is no clarity anxiety can begin to set in.

So, here is your simple plan for a plan approach if you are working towards retirement in the next 5, 10 or 15 years.

  1. Start by writing down some simple goals you would like to accomplish. (Examples below)

o   Pay off Mortgage

o   Generate Retirement Income equal to what current working income is + inflation

o   Care for parents if needed

o   Make sure kids are not burdened with student debt

  1. Next Interview 2 or 3 Financial Planners and be open and honest with your finances, your goals and some items you should want to know.

o   Make sure your personality’s work well together

o   Understand what services are provided with planning, is it paperbound or digital and how easy will it be to update, access and follow.

o   Experience & Credentials how long have they worked in Financial Services and have they passed any additional educational training beyond the Series 6 or 7 license.

o   What company does the Planner work with? Are they independent or do they work for a larger Bank and what kind of oversight or compliance is in place for this planner?

o   Does the Planner have any conflicts of interest when working with clients?

o   Lastly, how does the Planner get paid? Do they charge by the hour or flat fee, and what is there process for follow up and communication.

Now that you have this information, you have interviewed your Financial Planners, why move forward and hire someone in other words what’s in it for you, the near retiree?

When you have your financial affairs organized, your will/estate plan updated in conjunction with developing your Financial Plan. This process should also include all of the details of reviewing Retirement Plan beneficiaries, complete analysis of your current Asset Allocation, and Risk Management review for your home you will gain confidence, clarity and purpose that you are heading in a direction with greater certainty, and this will lower your anxiety. This would be like running your home like a business, and hiring your Personal CFO (chief financial officer) to be your advocate, make pro-active calls and review periodically to make sure you are still on track.

Best Wishes, and may you move forward with clarity and purpose towards your future.

Craig Brown, CRPC ®


*Third party posts found on this profile do not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness