Saving and planning for retirement is the most important way to ensure a secure financial future. According to the US Department of Labor, “only half of Americans have calculated how much they need to save for retirement.” Many financial advisors are helping clients retire by creating plans to meet their retirement goals, so they can find happiness after they leave the workforce. But what are the benefits of retirement planning for your clients? Let’s explore retirement planning and why it’s important, so you can get started on your client’s plan soon.
What Is the Meaning of Retirement Planning?
Retirement planning involves preparing for your client’s future before they reach retirement age by identifying retirement income goals and the resources required to meet those goals. You must first develop a retirement strategy and take proactive measures to accomplish it.
For example, as an advisor, you should evaluate present and future cash flows while preparing for their retirement to see if their desired level of retirement income can be reached. Things to consider when planning for requirement are:
- Identification of income sources
- Estimation of costs
- Implementation of a savings strategy
- Management of assets and risk
This approach supports retirees in developing a clear long-term goal for their post-retirement life as well as a realistic expectation of the changes they will face throughout the transition.
Part of planning includes understanding their wants and needs as a retiree. What lifestyle will help their retirement be fulfilling and comfortable? Experts suggest you help prepare them to live off a minimum of 80% of their current income when they retire. As an example, if they lived off of $100,000 per year pre-retirement, they should have a minimum of $80,000 per year allocated for during retirement.
But determining what lifestyle they want to have after retirement includes asking them questions like:
- What do you want to do after retiring?
- Do you have a mortgage or other debts?
- Do you have any savings or IRA?
- Do you own assets like property, vehicles, etc.?
- Where do you want to live—state, city, home?
By deciding on their goals, you’ll be able to better financially plan for retirement. What is the key to retirement planning? Ultimately, their retirement plan is reliant on their own savings objectives, spending priorities, and retirement lifestyle preferences.
As an advisor, you might be wondering, “What age is considered pre-retirement?” Typically pre-retirement age—or between 50-62 years old—refers to the 10 years before retirement age.
Why Is Planning for Retirement Important?
Retirement planning is crucial to having a financially secure retirement once your client stops working. Before they retire, they can make conscious decisions regarding their career and finances by developing a comprehensive strategy. With the right plan, you can help them:
- prepare for any medical emergencies
- remain financially independent
- help their family when they’re in need.
If you’re looking to give 6 reasons why retirement planning is essential to get started in preparing for a client’s future, explain these things:
- You can have better and reliable financial security.
- You can pay less taxes in the long run.
- You can have a more enjoyable and fulfilling retirement.
- You can remain financially independent.
- You can contribute to charitable causes you care about.
- You can prepare for any unexpected life event—like medical emergencies.
What Is the First Thing to Do Before Retiring?
Before your client retires, they should always be saving and building wealth. One way many people save for retirement is with a savings plan through employers. If your client has been contributing to a retirement savings plan, then they might have significant savings available for them in retirement. Not only have they been contributing to the total amount, but these types of savings plans also accrue interest. The types of retirement plans that are most typically available to your clients as an employee are:
- Employer-Sponsored Plans (401k or 403b)
- Traditional Individual Retirement Account (IRA)
- Roth Individual Retirement Account (IRA)
- SIMPLE Individual Retirement Account (IRA)
Of course, accumulating wealth can happen through other avenues like personal savings, investing in the stock market, or accounting for assets like property and vehicles. Planning for retirement based on these types of investments and savings are important to keep in mind. Retirement planning is about understanding how those assets can work for your client once they have retired. This is when a financial advisor will step in to guide them through the process of understanding their financial situation.
Take Charge of Retirement Finances with Life Settlement Advisors
Expanding your client’s retirement assets, especially if their total wealth does not meet their needs, is possible with a less known opportunity: selling your life insurance policy. Yes, it is possible to sell a life insurance policy before it is paid out due to a death, which gives your client the opportunity to increase their available cash when they need it the most.
If they no longer need a policy, if it is becoming too expensive, or they have an unexpected expense like medical bills, they can collect on their life insurance policy through a third party who pays them cash and takes over their premiums. Life Settlement Advisors can help your clients sell a life insurance policy for a lump sum payout that will let them see the benefit of the life insurance policy immediately. For more resources on life settlements and to see if they qualify, visit our website today.
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.
I am always happy to answer any and all questions about these life-transforming transactions.
Saving and planning for retirement is the most important way to ensure a secure financial future. According to the US Department of Labor, “only half of Americans have calculated how much they need to save for retirement.” Many financial advisors are helping clients retire by creating plans to meet their retirement goals, so they can find happiness after they leave the workforce. But what are the benefits of retirement planning for your clients? Let’s explore retirement planning and why it’s important, so you can get started on your client’s plan soon.
What Is the Meaning of Retirement Planning?
Retirement planning involves preparing for your client’s future before they reach retirement age by identifying retirement income goals and the resources required to meet those goals. You must first develop a retirement strategy and take proactive measures to accomplish it.
For example, as an advisor, you should evaluate present and future cash flows while preparing for their retirement to see if their desired level of retirement income can be reached. Things to consider when planning for requirement are:
- Identification of income sources
- Estimation of costs
- Implementation of a savings strategy
- Management of assets and risk
This approach supports retirees in developing a clear long-term goal for their post-retirement life as well as a realistic expectation of the changes they will face throughout the transition.
Part of planning includes understanding their wants and needs as a retiree. What lifestyle will help their retirement be fulfilling and comfortable? Experts suggest you help prepare them to live off a minimum of 80% of their current income when they retire. As an example, if they lived off of $100,000 per year pre-retirement, they should have a minimum of $80,000 per year allocated for during retirement.
But determining what lifestyle they want to have after retirement includes asking them questions like:
- What do you want to do after retiring?
- Do you have a mortgage or other debts?
- Do you have any savings or IRA?
- Do you own assets like property, vehicles, etc.?
- Where do you want to live—state, city, home?
By deciding on their goals, you’ll be able to better financially plan for retirement. What is the key to retirement planning? Ultimately, their retirement plan is reliant on their own savings objectives, spending priorities, and retirement lifestyle preferences.
As an advisor, you might be wondering, “What age is considered pre-retirement?” Typically pre-retirement age—or between 50-62 years old—refers to the 10 years before retirement age.
Why Is Planning for Retirement Important?
Retirement planning is crucial to having a financially secure retirement once your client stops working. Before they retire, they can make conscious decisions regarding their career and finances by developing a comprehensive strategy. With the right plan, you can help them:
- prepare for any medical emergencies
- remain financially independent
- help their family when they’re in need.
If you’re looking to give 6 reasons why retirement planning is essential to get started in preparing for a client’s future, explain these things:
- You can have better and reliable financial security.
- You can pay less taxes in the long run.
- You can have a more enjoyable and fulfilling retirement.
- You can remain financially independent.
- You can contribute to charitable causes you care about.
- You can prepare for any unexpected life event—like medical emergencies.
What Is the First Thing to Do Before Retiring?
Before your client retires, they should always be saving and building wealth. One way many people save for retirement is with a savings plan through employers. If your client has been contributing to a retirement savings plan, then they might have significant savings available for them in retirement. Not only have they been contributing to the total amount, but these types of savings plans also accrue interest. The types of retirement plans that are most typically available to your clients as an employee are:
- Employer-Sponsored Plans (401k or 403b)
- Traditional Individual Retirement Account (IRA)
- Roth Individual Retirement Account (IRA)
- SIMPLE Individual Retirement Account (IRA)
Of course, accumulating wealth can happen through other avenues like personal savings, investing in the stock market, or accounting for assets like property and vehicles. Planning for retirement based on these types of investments and savings are important to keep in mind. Retirement planning is about understanding how those assets can work for your client once they have retired. This is when a financial advisor will step in to guide them through the process of understanding their financial situation.
Take Charge of Retirement Finances with Life Settlement Advisors
Expanding your client’s retirement assets, especially if their total wealth does not meet their needs, is possible with a less known opportunity: selling your life insurance policy. Yes, it is possible to sell a life insurance policy before it is paid out due to a death, which gives your client the opportunity to increase their available cash when they need it the most.
If they no longer need a policy, if it is becoming too expensive, or they have an unexpected expense like medical bills, they can collect on their life insurance policy through a third party who pays them cash and takes over their premiums. Life Settlement Advisors can help your clients sell a life insurance policy for a lump sum payout that will let them see the benefit of the life insurance policy immediately. For more resources on life settlements and to see if they qualify, visit our website today.
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.
I am always happy to answer any and all questions about these life-transforming transactions.
