Retirement Readiness Part 1: Are You Ready?

At SevenBridge Financial Group, retirement readiness is a cornerstone of our financial planning services. You work your entire career earning income from employment which provides for your lifestyle needs. Also, during your working years, you budget, save, invest, and accumulate assets so that one day you can retire. Selecting the point in time where you exit the workforce and enter retirement is very emotional but getting the timing right is vital to your financial future. At SevenBridge, we have helped hundreds of families retire successfully. Our client service is centered around financial planning but also relies on time-tested investment management strategies to provide income, preserve capital, manage risk, and grow investments over time.

Americans today have much more responsibility for saving and accumulating assets for retirement compared to past generations. The decline of defined benefit plans (pensions) for retirees has resulted in passing the responsibility for retirement planning from employer to employee. Each American retiring from the workforce today is responsible to have saved and accumulated assets to provide annual income to cover about 60% of total living expenses. According to the Social Security Administration, social security benefits cover about 40% of an average family’s living expenses in retirement. OK, so how much do you need? It depends.

What’s Your Number?

In 2010, ING (now Voya Financial) came out with the “Your Number” campaign, and you may remember the catchy commercials. ING recognized an issue in American personal finance that planning for retirement is viewed as scary and burdensome. Their campaign provided tools to make it simpler. SevenBridge uses similar but more sophisticated tools in our retirement planning analyses. Couple advanced yet easy-to-use tools with our team’s experience, and we provide our clients with the clarity to retire confidently.

The truth within those ING advertisements is that every client’s “number” is different. Each client that we work with has a different set of circumstances, goals, and views about risk and investing. As advisors, our job is to help our clients settle on, execute, and monitor a plan of action that gives them the best chance of reaching their retirement goals. Retirement readiness projections require many assumptions and variables that drive the answer to the question “What’s Your Number?” This series of short articles will review those assumptions and explain how minor changes can have a significant impact on how and when you are able to retire. Other important retirement planning topics will be covered as well.

Upcoming articles in this series:

  • Life expectancy
  • Living expenses – inflation
  • Living expenses – travel
  • Taxes – federal, state, local
  • Healthcare – Medicare and private insurance
  • Income replacement – social security
  • Income replacement – pensions and deferred compensation
  • Income replacement – distributions from investment portfolio
  • Investment management – return
  • Investment management – allocation and security selection
  • Putting it all together – Monte Carlo
  • Putting it all together – What’s my Number?
  • Putting it all together – Ready financially, how about personally?

Contact us today at 717-775-8661 or to get started today!

Clinton Smith III is a Sr. Wealth Advisor with SevenBridge Financial Group, a wealth management firm with offices in Harrisburg, PA and Denver, CO. SevenBridge Financial Group LLC (“SevenBridge”) is an SEC-registered investment advisor located in the Commonwealth of Pennsylvania.

SevenBridge Financial Group and its representatives are in compliance with the current filing requirements imposed upon SEC-registered investment advisors by those states in which SevenBridge Financial Group maintains clients. The views expressed in the referenced materials are subject to change based on market and other conditions. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. The information provided herein does not constitute investment advice and is not a solicitation to buy or sell securities.