The goal was to help the clients develop a financial plan that would create financial stability and freedom in their retirement age for a successful, enjoyable, and worry-free retirement. LRVS applied a three-pronged approach to this client’s situation to help them achieve the financial goals they were striving for. Despite the challenges identified, the advisor created a financial plan to solve for the gaps that needed to be filled in their income. The strategy began by differentiating needed income (covering the costs of food, housing, medical bills, etc.) from the income they wanted (funds for luxuries like vacations, travel, gifting, etc.).
The first aspect LRVS addressed was short-term needs, which would be covered by cash and cash alternatives, with enough to cover expenses over at least a 6 month period, including after-tax expenses.
Secondly, LRVS developed an income bucket to fulfill the client’s annual desired income. The advisor analyzed their sources of income to determine their expected income from sources like social security, pensions, or rental income. This income was in a protected bucket, safe from any market downturns.
Lastly, LRVS helped the client to develop a growth-oriented bucket designed to meet future retirement needs, health care costs, inflation protection, and estate planning. With this plan, the client was able to successfully allocate funds to cover immediate and long-term retirement monetary needs.Through this analysis, the advisor was able to identify the remaining gap in the client’s income. LRVS then helped them to plan to fill this gap through their employer plans, IRAs, and brokerage accounts.