Retirement Checkup

Overview: provides detailed financial insight to help future and current retirees understand their progress towards retirement. 

Description of service: The checkup starts with a questionnaire that gathers current and desired retirement age, income, expenses, assets, and liabilities. 

The compilation of this information is organized into a sophisticated and highly secure retirement planning software by a fiduciary. The fiduciary compiles the information into packets, the first packet is named ‘base facts’. 

Base facts serve as the foundation of the checkup, and do not include inflationary factors on income or expenses, appreciation and depreciation of assets, and it does not factor taxes. This provides a clean palette for planning, and helps to verify correct input and cash flow to planners and prospects.

From base facts we build ‘scenarios’. A scenario is a duplication of the base facts with modifications. They’re used to provide an understanding for how retirement might look if you made one decision in place of another, if an unpredictable event took place, or if any variables changed.

Within each scenario lies a set of reports. Reports list and detail financials as they increase or decrease over time, and according to the goal of each scenario. Reports make visualizing and understanding the data easier.

Retirement Checkup™ includes the following scenarios and reports:

/////////////////////////////////////////////////////////////////////   Scenarios   ////////////////////////////////////////////////////////////////

Scenario #1 – Retirement Income: Your retirement income goal and age are measured against the future estimates of your social security, pension(s), and retirement savings (converted into an income stream). 

Scenario #2 – Market Volatility: Can the retirement savings accounts used to generate income withstand several years of bear markets in the early, and latter years of retirement.   

Scenario #3 – Long-term care: What if one or both spouses gets in a position where they can no longer care for the other or themselves, does the plan provide enough protection for care.

Scenario #4 – Rapid Inflation: What if goods and services rapidly increase in price compared to annual raises to income.

Scenario #5 – Early Death: What if the spouse you depend on for income predeceased you.

Monte Carlo: We apply Monte Carlo to each scenario. Monte Carlo runs 1000 simulations for each scenario, with real life changes to the financial variables, to calculate the probability of it succeeding.

//////////////////////////////////////////////////////////////////////   Reports   //////////////////////////////////////////////////////////////////

Report #1 – Cash Flow Report: The cashflow summary includes income and expenses; both increased by the annual rate of  inflation. The difference between income and expenses is listed in the net cash flow column; positive or negative cash flow is added or deducted from assets in the final column after interest and fees have been applied.

Report #2 – Investment Report: A list of investments by asset class and weight. Asset class include large/mid/small cap growth/value/blend, international, emerging markets, municipal/corporate/government/agency short/intermediate/long-term investment grade/high-yield, hedge funds, and cash and equivalents.

Report #3 – Asset Report: A depiction of asset balance and growth and includes all asset types such as IRAs (traditional/Roth/SEP/SIMPLE), stocks and all other equity assets, bonds and all other fixed income assets, primary residence, rental properties including residential and commercial, vehicles, and any other major asset type.

Report #4 – Tax Report: A detailed report that includes gross total income, regular federal income tax, capital gains tax, other income taxes, and total income tax, and your effective income tax rate.

Report #5 – Net Worth Report: Provides a  detailed list of assets and liabilities. Assets are broken into Non-Qualified (cash equivalents, taxable investments, insurance policies), Retirement (IRAs, Annuities, other Investments), and Real Estate (primary residence, rental properties both residential and commercial).

Retirement Checkup™ is designed to provide pre and post-retirees with a deep understanding of their current situation projected beyond the average lifespan to the age of 100.

The checkup does not include financial recommendations, nor does it attempt to steer or persuade. It’s simply an unbiased approach to disclosing financial facts and projections about retirement.

Pricing: Our goal as a retirement specialist firm is to bring awareness about retirement to the American people. Although the majority of individuals are unsure of their progress toward retirement, they’re not willing to pay the cost of a checkup, and that is why we designed Retirement Checkup.

Retirement Checkup is a low-commitment, low-cost program that provides pre and post retirees with a snapshot of retirement, so they can begin making the changes necessary to retire at some predetermined future point.

Sunpath hourly planning cost is $250. Retirement Checkup’s range between 3 and 5 hours, dependent upon the client details, with the average cost for a checkup at $1,000. 

Retirement Plan

Overview: Individuals who completed a Retirement Checkup™, have the option to receive a retirement plan. The plan provides a clear path to the highest probability of a successful retirement through strategic planning, investment advice, and recommendations. Plans are built by a fiduciary and reviewed by a CFP and CPA to ensure the highest standard of planning. 

Description of service: Planning starts by analyzing areas of concerns depicted in the retirement checkup. Concerns can be generalized, but differ significantly between pre and post-retirement. 

The greatest concern of pre-retirees is retirement income deficiency as a result of inadequate savings or income producing sources, such as pensions, social security, and other income producing assets. 

Solutions for inadequate savings and income take many forms. We start with solutions that require the least amount of effort and resources. An example would be a middle age individual with an allocation that does not match risk tolerance. 

Leveraging a portfolio that takes on more risk, would, on average, produce a greater return and therefore require less from the individual to meet the same goal of contributing more at the current rate of return.

If reallocation does not suffice, planners move to the next solution. From our example, a cash flow analysis with an emphasis on budgeting.

Beyond meeting the goal of retirement income, our plans help pre-retirees mitigate risk with proper investment allocation and insurance products, reduce taxes with strategies and deferral plans, and pass down their portfolios through succession and estate planning. 

As pre-retirees evolve into retirees their concerns shift. At the onset of retirement they must answer several irreversible questions around the best time to take social security, what pension distribution option should be selected, and how much income should be withdrawn from retirement savings, and from what accounts to reduce taxes.

Other primary concerns include decisions around medicare and long-term care, asset preservation with reallocation, early death, rapid inflation, tax mitigation, and estate planning.

Using the same methodology outlined above, our planners attempt to achieve goals with the lowest level of effort and resources, and gradually move to more sophisticated, hands-on approaches that require a greater level of effort, trust, and commitment.

Pricing: Our base plan includes 10 hours of planning at a rate of $250 per hour for a total of $2,500. This 

Plan Maintenance

Plan maintenance is a service that seeks to improve the probability of a successful retirement by permanently assigning the fiduciary who built the plan to a routine maintenance schedule and relationship with the client. Their job is to understand the client at both the data and emotional level, with the completion of the client’s financial goals as their objective.

The fiduciary is contractually required to keep the client’s financial life organized, provide accountability to achieve the advice and recommendations in the plan, bring objectivity to situations that require unbiased insight from trusted resources on money matters, provide proactivity with advice and custom built scenarios for unanticipated or planned life transitions, and education to bring further clarity to the plan and the importance of adherence.

This is all possible through the use of a sophisticated retirement planning software. Beyond the simplification of planning, is the aggregation of live financials. Client’s can choose to link any investment account, liability (car loan(s), mortgage(s)), and the information is updated at the end of each day. This provides an all-in-one place for client’s and advisors.

In addition, the system provides live chat accessibility for on-the-fly questions that wouldn’t necessarily warrant a call, screen shared meetings, and a milestone section to track and manage client goals.

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