At the core of a fulfilling retirement is a strategy created uniquely for you. Our approach at Quantis is built on a foundation of personalized guidance and clear, actionable steps. We’ve distilled our retirement planning process into the following three steps that paves the way to a retirement tailored to your vision and values.
In this initial phase, we utilize “what-if” scenario analysis to bring your ideal retirement vision into focus. We delve into questions such as: Can you retire sooner than planned? Are you financially prepared for a higher level of travel or owning a second home? These inquiries are essential for crafting a retirement strategy that truly reflects your aspirations.
Our process mitigates uncertainty in retirement planning by examining a range of economic conditions, creating a plan tailored to your goals. Key areas we focus on include:
• Retirement Timing: Evaluating whether early or delayed retirement enhances your financial security.
• Spending Adjustments: Assessing the impact of changes in current spending on your future finances.
• Social Security Decisions: Identifying the best time to start claiming benefits.
• Investment Strategies: Reviewing the need for increased savings, retirement contributions, or Roth IRA conversions.
• Legacy and Philanthropy: Incorporating inheritance and charitable giving into your financial plan.
• Healthcare Planning: Planning effectively for healthcare costs, including insurance and potential long-term care.
A decision such as retiring one year earlier, delaying Social Security, or changing withdrawal strategies may influence taxes, portfolio longevity, and lifetime income.
Our planning process allows us to evaluate multiple scenarios before important decisions are made.
image001
By developing your personal household balance sheet, we evaluate the current value of future assets (e.g., savings, pensions, social security, inheritances) and liabilities, primarily retirement expenses. We aim to precisely determine your retirement funding level, earmarking necessary assets for retirement and identifying surplus funds, termed as your spare risk capacity.
Importance of the Household Balance Sheet:
Reduced Forecasting Errors
Our method in Step 2, focusing on current asset and liability values, minimizes the risk of compounding long-term forecasting errors inherent in traditional approaches. This leads to a more accurate and reliable evaluation of your retirement fundedness.
Clear Asset Allocation
We provide detailed insights into the portion of your assets required for retirement, to allow for informed and strategic asset distribution.
Enhanced Investment Security
Our goal is to secure your critical retirement assets, maintaining stability during fluctuating markets and offering greater confidence in the long term.
Household Balance Sheet Example Once we have charted your course through strategic planning and a detailed balance sheet analysis, we arrive at the pivotal process of Portfolio Construction. This stage is about smart asset segmentation, ensuring alignment with your needs and aspirations.
Dedicated Assets
These are the funds earmarked to secure your retirement. They’re invested conservatively to provide for your essential expenses and to create a steady income stream.
Growth Assets
This is your surplus capital, the financial power you hold beyond your necessary retirement provisions. Here, we have the opportunity to pursue more aggressive growth strategies, aiming for higher returns that can expand your financial legacy and provide for the extras that make life enjoyable.
Portfolio Construction Example - A list of your goals and dreams
- Latest earnings statement
- Summary of benefits from work
- Investment statements, including retirement plans
- Bank statements
- Mortgage statement
- Credit card statements
- Last year’s tax return
The Financial Planning Process, as delineated by the Certified Financial Planner™ Board of Standards,
consists of the following six steps:
Tax return preparation services are offered through Quantis Tax Services and are separate and unrelated to Commonwealth Financial.
