At SevenBridge Financial Group, retirement readiness is a cornerstone of our financial planning services. In our last Retirement Readiness series article, we discussed the future inflation rate of living expenses. Another key goal of many of our retired clients is Travel. Travel goals are important to include in our analysis to determine “What is Your Number?”.
Planning for Fun in Retirement
Financial planning at SevenBridge is designed to assist our clients to identify their goals and to help develop an overall financial plan to make those goals achievable. Many clients assume that our advice will always revolve around saving and investing vs. spending. Instead, our conversations focus on a plan to help our clients spend money on things that make them the happiest and becoming more frugal on things that aren’t as important to them. Our goal is to help our clients achieve maximum happiness and security throughout their lifetime by being smart and thoughtful about spending patterns, long-term and short-term.
Our clients have been good savers and investors throughout their careers. In retirement, we believe that it is essential to build an expense assumption for FUN. Some of our clients wish to travel overseas, purchase a second home, take cruises, or a myriad of other fun activities. Our job is to help our clients estimate the current and future cost of the fun and build those costs into their overall plan. In this way, a client leaves our office feeling confident that they can do the things that they enjoy in retirement without taking on an undue risk that their long-term financial security will be harmed. Of course, there are some instances where clients need to adjust their goals, but most of our clients are realistic about their financial position and have developed excellent goals that are achievable.
Prioritization and Research
Prioritization of discretionary expenses is key to a successful retirement. If traveling rises to the top of the list of short-term goals for a retiree, then maybe a new car purchase or frequent dining out is moved to second or third place in our client’s list of wants.
Sometimes part of the fun of traveling is planning your trips, researching the destinations that you wish to travel to, and talking with your friends and neighbors about their experiences. Our clients are encouraged to be spontaneous when they prefer but also take joy in planning big trips, understanding the attractions and their costs so that the trip is enjoyable without financial worry.
We also work with local travel experts to help our clients plan trips. These resources can make all the difference in setting a travel plan that is efficient and easy, allowing maximum relaxation and enjoyment along the way.
Our team at SevenBridge utilizes conservative but reasonable estimates for fun in retirement based on our goal-setting conversations with each individual client, such as estimated travel expenses. It is our view that in retirement planning calculations, the element of conservatism should be employed to provide our clients with the best chance of retiring confidently and successfully.
Only a piece of the puzzle
There are many additional assumptions and factors to consider when setting your retirement date and answering the question, “What is my Number?”. Next up in our series is Taxes – federal, state, and local.
Contact us today at 717-775-8662 to get started planning your retirement!
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.