We provide extensive retirement planning services including work vs. retire “gap analysis,” 401(k), 403(b) and 457 retirement plan rollover analysis, retirement cash flow reviews, inflation adjusted withdrawal strategies, lump sum analysis and required minimum distribution calculations.
The primary financial goal of most people is to have enough financial security to be able to retire with a safe income stream that increases with inflation to keep them healthy and happy for their lifetimes (sometimes their kids’ lifetimes as well.) The initial step of retirement analysis is to determine ‘critical capital’; or the amount needed in dollars to provide a flow for life. The amount needed should include inflation (and we think a provision for retirement health care), as well as future taxes in retirement, such as the taxes on eventual IRA distributions. Flows like Social Security and pensions are factored in, and the critical capital is calculated using a conservative rate of return. This step helps us determine what amount of money you need after taxes to live a good life, factoring in inflation, for as long as you may live. (Actually, we make the calculation based on an infinite time frame, rather than try to predict your life expectancy: it’s easier and although unrealistic, has a nice ring to it.)