ver 27%, and New York is double. Only Orlando is reasonably close, but is still about 7% more expensive. Clearly, when planning the ideal retirement, WHERE you intend to retire can have as much or more financial significance than WHEN you desire to retire. How much in savings would be ideal by the time you retire? And how much do you realistically expect to have? Survey says: To supplement Social Security and pensions, an ideal savings target would be $610,000. Unfortunately, the second half of the question on expected savings leaves a big gap: $276,000. This is less than half of what would be desirable. In an unrelated survey3 conducted for the Certified Financial Planner Board of Standards, Inc. (CFP Board) by Heart + Mind Strategies of 1,000 voters on election day, 2018, there were a couple of important insights which bear upon this last question. • 60% of the respondents indicate they expect to work with an advisor for planning their retirement needs. • However, 23% intend to wait until just 3 to 5 years before retirement to engage a professional financial planner. • 82% want someone who can provide a comprehensive plan that takes their holistic financial situation into consideration. • 79% believe their financial advisor should always work in their best interest (the “fiduciary” business model). In our nearly 50 years of helping clients plan their own “ideal retirement,”
we think there are three key elements that transcend the various visions of what might be ideal: 1. If you don’t have a well-conceived plan for your ideal retirement, the best time to start working on it is today. Unless you are willing to do considerable homework on your own, seek the help of a qualified professional financial planner sooner rather than later. 2. Choose a planner that is well experienced and qualified. Credentials can be important indicators. Look for the key 4 credentials: CFP® certification, CPA, Chartered Financial Analyst, and JD (Juris Doctor). 3. Choose a planner that commits, in writing, to always interact with you as a fiduciary, with a legal obligation to work in your best interest. https://www.provisionliving.com/americas-ideal-retirement-lifestyle/ https://www.bestplaces.net/cost-of-living/ 3 https://www.cfp.net/news-events/latest-news/2018/11/15/new-electionnight-survey-even-with-booming-economy-consumers-are-not-on-track-to-retire-on-theirterms 1 2
by Phillip Hamman, CPA, CFP® President, Linscomb & Williams
May + June 2019
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