Season 5 Episode 2 The 7 Essential Components of a Retirement Plan

In this episode, we take a big-picture view of what planning is, and what a retirement plan should include.

Products are not a plan.

Someone may think they have a plan because they have a 401(k), pension, or insurance policy in place. Or they plan to get a little more conservative over time with their portfolio. Each of those things may be part of a plan, but they are actually products, they are not a plan.

Hope is not a plan.

When you go to a traditional financial planning firm that is not a specialist in retirement income planning, they will give people a simulation, a percentage chance that you won’t run out of money by a certain time.

There’s a better way to plan for retirement than hoping or assuming or looking at hypothetical assumptions. The numbers can be manipulated, and our concern is with the hypothetical returns.

So, what is a true retirement plan?

A true retirement plan moves beyond just having a policy or a product, it’s understanding why and how it fits within the plan.

We believe there are 7 areas of planning: Liquidity, Income, Investment, Tax, Legacy, Insurance, and Freedom Planning.

We break these down into two phases:

  1. The Income Plan which encompasses Liquidity, Income, and Investment Planning.
  2. The Impact Plan includes Tax, Insurance, and Legacy Planning.

The entire reason we save, and work for 30+ years is so that when we arrive at retirement, we no longer have to worry about the income stream. This is why we believe income planning is the best way to start.

Once the income portion of the plan is complete, then we move into “The Impact Plan” phase. In this phase, the relationship with our clients grows, as we help them define their vision for retirement and beyond.

A long-term relationship is needed to cover all 7 areas of planning with the end goal being FREEDOM. We celebrate our clients who are in the freedom stage of our Simplify Your Retirement® Plan.

If you are new to Wise Wealth and want to learn more about how the Simplify Your Retirement Plan® Process can help lead you to a peaceful and enjoyable retirement, contact us!


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