Almost 20% of Americans are retired, with that number increasing each year as more and more Baby Boomers retire. That is 1/5 of our population in the United States. That percentage is not a surprise to most. What is a surprise is that less than 5% of the people working in our industry know how to create a plan you can fully trust.
Unfortunately, the financial planning industry has focused almost solely on the accumulation phase. Having worked with more than a thousand advisors and insurance agents around the nation, there was a common theme when it came to retirement “income” planning. They all said something along the lines of, “None of my certifications teach me how to help a client produce an income stream that is reliable with the correct amount of safety and risk; and ensure they do not run out of money at some point of their life.” This includes CFP’s (Certified Financial Planners), CPA’s and the best of the best Financial Advisors and Insurance Agents. They would all tell you they rely heavily on concept, what someone taught them, but mostly an Income Planning Software.
The #1 software in our industry is used by almost every major firm that uses a Monte Carlo simulation (as most of them do) to predict about a 40 – 60% success rate of achieving what is illustrated, with most illustrations landing pretty close to 50%. Let that sink in… Are those numbers you would want to trust? In addition, most software does not understand how to properly illustrate the impact of taxation as you withdraw funds from your retirement accounts – or help you determine which funds to use first.
That bothered us! So, this is why we formed Solutions 2 Retirement and aligned ourselves with partners that can help you succeed. There should be a proven, reliable way to plan your retirement and feel confident you will not run out of money. What we have seen is by the time most realize they are falling short of their hopes, they are starting to run low on assets. They are not younger by this stage…they are much older…and it is simply too late to generate some income by returning to the work force to help their funds last. The wrong decisions cannot be reversed because those funds are gone, and taxes paid on them. Who wants that kind of stress? Retirement is something you looked forward to and never once thought, “I hope I get to go back to work one day!” And you need a team that can handle the nuances of retirement income planning.
The right software is certainly key to your success. What is even more important is utilizing true tax planning. When combined with a balance that fits your comfort of risk and safety, the results are simply shocking. You may be surprised to learn that tax planning and taking into consideration tax rate risk is more influential than rate of return – we were! Combining the two will lead to you having financial peace of mind throughout your retirement – allowing you to enjoy the part of your life you worked hard to reach.
While we provide other services that add value for a variety of reasons, we truly specialize in a way that very few in our industry can when it comes to retirement income planning; and would love the opportunity to visit with you to let the math show you what your retirement could look like. No matter which of our services you may choose to utilize, you will always find we tailor everything to you with a commitment to place your needs as our #1 focus.
Ready to find out more?
We look forward to assisting you with all of your retirement needs.