Retirement Planning

TIM can help guide you along the path to, and through, retirement. No matter where you are in life, we can provide guidance, tools, and services to help you prepare for retirement on your terms. We all have different ideas about how we want to retire. But there are a couple of things that many of us have in common. First, we want to save enough to retire when we want to; and second, we want to ensure our money lasts throughout retirement. No matter how you want to spend your retirement, there are steps you can take today to help make sure you reach your goals and TIM is here to help you.

The Flight Simulator

Definitions to know

FLight Simulator

A system that tries to copy, or simulate, the experience of flying an aircraft. It is as realistic as possible.

Financial Simulator

A system that tries to copy, or simulate, the experience of a person in the financial markets. It is as realistic as possible.

What is a financial simulator?

A financial planning simulation is just the same as what you and other pilots have done in your aviation career. In aviation, you have flight plans, objectives, backup plans, checklists, electronic guidance, simulations, tracking devices, and long term goals. The financial simulations are not much different. But instead of talking and learning about various situations you might encounter while in the air, we talk and learn about situations you might encounter while you’re enjoying retirement.

Easy to understand example: a flight simulator.

You get into the simulator and they put you in situations which can simulate many situations: good, bad and ugly. The crew reviews those situations and makes sure they understand how to handle them and if they do, the crew gets a pass on the ride.

The financial simulator is exactly the same. You and TIM (the crew) put in your specific financial information into the simulator which can simulate many situations good, bad and ugly. We then review the results. If your financial goals and plans are able to handle these situations presented by the simulator, the plan and crew gets a pass on the ride (you do not run out of money).

The next statement is very important: The financial simulator runs 1000 life episodes for you. One simulator ride is not enough to be confident that your goals and aspirations can be achieved. So 1000 different lives are created and tested.

What information do you need to make sure my retirement gets a pass on the ride?

First we gather all of your financial data. This means savings accounts, real estate you own, retirement accounts, 401k’s, etc.

Next, we look at how much you want to spend during your retirement. If you want to travel the world, your plan will have to be different from someone who wants to play golf.

We can put this information together online or on paper. The most important thing is that you’re honest with yourself and the crew about how you see your ideal retirement going.

Ok, we got all this information together, now what?

We run the plan through the financial simulator. The simulator we use is called Money Guide Pro. This simulator looks at a many different situations that could possibly happen and it lets us know if our plan would get a pass on the ride (not run out of money).

The final review is done on the Internet/Skype in the comfort of your home. A face-to-face is also possible. There is no paper. Your copy is located on a secure server in the cloud, is updated daily and can be accessed on any mobile, tablet, or desktop device when YOU want it.

This sounds good, but how do I really know it will cover every possible situation?

Just like the simulator can see if you can fly a plane with one engine and no landing gear, the financial simulator can see how the financial plan would hold up if the markets go into a deep downturn and everyone wants to buy United States Government Bonds. It does this by looking at all kinds of situations based on years of financial and personal data. So if you are 60, it looks at 30,000 years of data based on death at 90.

Can I create my own situations or see how different plans turn out?

Absolutely! Just like the flight simulator, it can produce numerous plan variations. So, if you want to fly less after you turn 60, we can look at how many trips you would need to fly to have our plan get a pass. We can show you what your retirement would look like if you retire at age 62 or 64. Lastly, if your ideal retirement will not be achieved by age 65, we can show you how things would look, if you took another job after your pilot career has ended.

Once we have a plan that gets a pass on the ride, what happens?

We look at what the plan tells us our most likely chance for success is and then we build a fully integrated financial life plan that pulls everything together for you and your family.

What if my financial plan changes due to an unexpected event?

Just like when you are in the flight simulator, every year new situations might arise. The great part about taking this approach is that we can simply change your plan based on these unexpected events and re-run them through the financial simulator to make sure the new plan also gets a pass on the ride.

How often do I need to look at my plan?

As often as you wish; but we will be reviewing it with you at least annually. Think of this yearly update like the ILS. As you intercept centerline you usually have a wide beam and you start correcting as necessary. Then you hit the FAF and corrections are tighter as you start getting more precise. After the FAF, the HUD comes into play and you are now getting very precise with course and glide path.

Finally, you are over the approach lights and because of all your corrections, you will make your touchdown point. In this case, it is your retirement date and the mile points are years of your life. You have a simple, effective, financial simulator that will allow you to attain your financial and life goals.

How much will this plan cost?

The cost is included in your annual Premier management fee. If you are not a Premier client and would like a plan prepared, not a problem. Give us a call to discuss.

Ok, let’s do this. What is the next step?

Give one of our advisors a call to get started!

Congratulations on taking the next step to financial independence!

Retirement Questions We Answer

  • Are my savings going to last throughout my retirement?
  • When can I retire?
  • How can I plan my retirement income?
  • Can I afford a private college for my children?
  • Should I downsize my residence when I retire?
  • How much will I earn on my investments?
  • How much cash flow will I need?
  • Do I need a revocable trust?

Retirement sources of income have often been
compared to a three-legged stool.

The second leg is your employer’s retirement plan.

The third leg is your personal savings.

How much you depend on the third leg depends on the strength of the other two.

The strength of each leg may change, and then you’ll need a new plan of action to reinforce the retirement stool.

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