Our team has the pleasure of engaging in life planning conversations with clients and potential clients often. We consider this trust a great privilege. One of the most rewarding aspects of our role as financial advisors is helping folks determine their ”number.”
A recent conversation with a potential client comes to mind. In the initial discovery meeting they point blank asked, “How much money should we have before we walk away from work?”
The response naturally was, “This depends on the lifestyle you want to live. Not only today, but also in retirement.” We began to drill more into their spending goals. It was fulfilling to see their mindset shift as we continued our conversation. A simple response helped this married couple understand there is no single magic ‘number’ to reach before they can retire. Simply put, your “number” will be driven by your lifestyle/spending.
It is our duty to assist investors in understanding and estimating how much they need to accumulate to live the lifestyle of their dreams. Every person is unique and has different goals to pursue. We pride ourselves on being a value-add partner in this subject matter.
For instance, let us say an investor is saving in their 401k and on track to accumulate a large amount of wealth in this retirement account. However, they have other more immediate goals. What if they have a goal of spending $30k on an anniversary trip in 5 years or to purchase a lake property before they reach retirement?
In our opinion, investors should have multiple buckets allocated based on the time horizon for each goal. It is a top priority to invest for your long-term retirement, but what about the milestones you would like to hit along the way? This is where a professional team can come into the fold and help you design a road map.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor. Independent Advisor Alliance and Marzano Capital Group are separate entities from LPL Financial
