Retirement Planning
Would you get on a plane at Heathrow airport that you did not know where it was going? Obviously not, so why would you do this with your retirement?
Many clients leave things to the last minute and therefore do not have enough time to reach financial goals. Many clients think they will never stop work, this is not realistic.
Over the years we have seen many clients get sick and be unable to work.
Stephen one of founders own father had bad knees and could not continue working anymore.
You do not feel the same at 40 as you did when you are 20.
Clients could still work part time but have income to fall back on and enjoy life.
It is also important to work out how much you would need for your retirement income.
The Cost of Retirement
Let’s use John as an example.
John is 40 and wants an income of $50,000 for the rest of his life at 60 in retirement.
John owns 1 villa in Spain and 1 Detached property in England. He plans spending time between both.
John has little in liquid assets to fund his retirement, and he has sought advice from us.
John would need to save up a million dollars to have an income of this level.
He would have two options:
- Drawdown from the money until it runs out.
- Invest it and get 5% income drawdown based on fixed returns.
5% of 1 million would give $50,000 per year.
However, one thing John did not consider was inflation. So obviously if we factor in this he would need more.
At 3% per year inflation John would need 1.8 million to have the same buying power in 20 years.
Preparing Your Retirement Planning Roadmap
Obviously without a plan it is very challenging to reach your goals.
Five Assets Classes can help you calculate how much you would need for retirement and what assets you have already.
Straightaway we can tell you if you have a shortfall presently.
Although it might seem many years away 20 years is only 240 pay checks.
We will work together and design a tailor-made plan to fit your needs.