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Retirement Planning Mandates a Long Term Focus

A recently retired husband and wife had always enjoyed life to the fullest. They both had productive careers, earned a good living – and – spent a lot of money. Confident they could manage their own finances, they never worked with a planner.


retirement planning

However, now beginning retirement, the wife became concerned that they were not saving anymore and their assets were declining in value. The couple took a careful look at their portfolio and discovered two important warning signals. They were not receiving the returns on their investments they desired and years of reckless spending caused their retirement nest egg to be lower than desired. Both realized they needed help and contacted planners at HFA for advice and help devising an appropriate spending strategy.

HFA planners reviewed the couple’s investment portfolio, tax returns, social security benefits and annual expenses. Using Monte Carlo analysis, planners worked with them to develop a retirement income spending plan. The software uses statistical modeling of various outcomes to generate probability of achieving success of having enough money to meet expenses to their life expectancy. In this case, it enabled the husband and wife to determine a suitable amount of retirement spending to help ensure they would not outlive their assets.

The planners also worked with their clients to help maximize the risk/return relationship of their investment assets. The double-edged goal was to not outlive their money and to safeguard an inheritance for their children by withdrawing only the suggested amounts. In addition, HFA planners pointed out what investment risks could be appropriate, suggested proper asset allocation and offered several income-tax planning considerations.

The couple, who now have a financial plan in place, vowed to no longer make foolish expenditures, which could jeopardize their children’s inheritance if they outlive their anticipated life expectancy.

The Moral of the Story: Plan early and prudently to preserve assets throughout your lifetime.


The case studies presented are hypothetical in nature and intended for illustrative purposes only to demonstrate the range and scope of services that are provided by HFA to its clients. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.

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