Retirement
Though retirement planning is just one pillar of the financial process we provide for our clients, the need for comprehensive retirement planning is the primary reason many new clients begin working with HFG.
The last five years before you retire may be some of the most critical years in your retirement planning stages as you must determine within that period whether you can truly afford to retire. The determination will hinge heavily upon the amount of preparation you have done to date and the results of such preparation.
Retirement Needs Analysis
One of the primary causes of retirees being financially unprepared for retirement is because of an incomplete retirement needs analysis. Harding Financial Group clients experience ongoing retirement needs analysis that is both durable and flexible enough to withstand life events that cannot be perfectly planned for like sickness, scholarships, post-career opportunities, divorce, the sale of a business, or the death of a patriarch or matriarch.
Retirement needs analysis frequently takes the simple approach of including current income, current income tax rate and projected income tax rate during retirement and assumes that an average of 70% to 80% of an individual’s pre-retirement income will be sufficient. With five years before retirement, a simplified retirement analysis could lead to critical errors with long lasting negative implications.
HFG clients receive a robust, comprehensive and ongoing analysis of the changing variables as they move toward retirement.
- Evaluation of predetermined income such as pensions and Social Security.
- Consistent and proactive reallocations of existing personal and business investments portfolios to align with 10, 20, and 30-year retirement income objectives.
- Reallocation of existing employer sponsored retirement plans such as 401ks, 403bs, profit sharing plans, etc.
- Employee stock options – nonqualified stock options and qualified, or “incentive,” stock options (ISOs).
- Monte Carlo Analysis – simulations sample probability distribution for variables in retirement such as length in retirement, income needs and investment volatility to produce hundreds or thousands of possible outcomes. The results are analyzed to get probabilities of different outcomes occurring, ultimately providing a percentage of likely success of the current retirement plan.