by Mark Kenney
I often hear clients ask, “Can I retire?” The concept of retirement seemed so far away for so long and now as they get closer to retirement, they don’t know how to create a plan that will give them the consistent, reliable income they were used to when they were working. With people living longer lives; most clients fear running out of money. Our plans make sure we account for longevity while allowing them to enjoy their retirement years.
How does SHP help people achieve retirement?
At SHP, we see that it all comes down to effective communication and having a transparent plan that the client can understand. We account for a margin of error that leans on the side of caution so our clients can sleep at night knowing their income is safe.
I believe strongly in the proactive approach, especially when it comes to tax planning. Not every financial planning organization gets ahead of the potential tax burdens you may face as a result of managing your finances and moving assets around. We believe we are in a great, low-tax environment now that will likely not be around for the next 20 years. Because of this, kicking your taxes down the road can be a very costly mistake. Educating clients about how our tax system works and what we can do now to alleviate the burden of taxes is a very impactful service we provide.
What is your best advice for those who will be retiring within the next ten years?
Start planning now! 10 years can go by very quickly. Sitting down with an advisor now allows you to make impactful moves that can set you up for an even more advantageous retirement, rather than waiting until you are a few years away.
When markets were shooting up just a few years ago, it may have seemed easy to just put your money in an index fund at watch those stocks break record highs. But now it’s clear that preparing for downturns can be helpful… but preparing in a way that makes sense for you is easier said than done. It takes careful planning with attention to all your unique needs, not just attending to portfolio growth.
Imagine if you didn’t have ten years to retire and needed to retire now! After a fast market decline, your portfolio might not have been in good enough shape to retire on if all you had was exposure to cookie-cutter retirement plans that didn’t adjust based on your needs, timelines, and tax situation.
What is your best advice for those who are already retired?
Enjoy it! We spend our lives trading time for money only to come to the realization that we can’t trade money for time. Having a holistic plan that accounts for your unique financial situation, protects against the risks you’re concerned about, and provides stable income and growth will allow you to enjoy the retirement you deserve.
Can you cite an example of a specific, complex problem that you solved and how you solved it?
More recently, I have seen a lot of clients deciding to retire at a younger age. They just went through two and a half years of the pandemic and decided they want a change. There are a lot of considerations one must understand when they decide to retire at a younger age, whether it’s fully understanding retirement account distribution rules or the impacts of early retirement on health insurance.
If you want to retire successfully and answer that question of, “can I retire?” You have to be aware of the longevity of your finances and be realistic.
Why is it so important for those in or near retirement to speak to a financial professional?
You only get to retire once. We believe that that calls for getting expert advice so you avoid costly mistakes that may result in having to go back to work or downsizing your lifestyle. We can give you honest, fair advice tailored to your situation so you can live the retirement you’ve been dreaming of.
