Cataloguing your income and assets is the first step of a sound retirement strategy. It provides a starting point for planning so that you can be sure your retirement income lasts as long as you do. If you would like to sleep well and prosper, start here.
When we welcome a new client to Wernham Wealth Management, we undertake a complimentary audit of their personal assets and wealth. We quite literally line up all assets on a spreadsheet and project their value into the future. We link your income with your investments, savings, obligations, liabilities and the spectrum of government benefits and taxes. With this information, we can conservatively estimate your personal worth with surprising accuracy 5, 10, 20 or 30 years into the future.
Once we have a clear picture of your future financial situation, we will help you create a ‘Plan B’: income replacement. There are only 2 sources of income, either you at work, or your money at work. If for any reason your earned income stops, you will have to have money at work or insurance at hand to replace that income. There are 3 things that will stop your earned income and one of them is sure to do so: death, disability and old age. Our goal is to get you to a point where you’re working because you want to, not because you have to.
During our session on net worth and retirement income forecasting, we may touch on tax strategy. You may have questions of your own similar to this one:
Robert, 63, has just completed a Wernham Wealth Management Income & Asset Analysis. He is looking for the earliest optimal year to retire from a retirement income point of view. He knows that his company will let him work until he is 70 and he doesn’t mind putting in a few more years.
Robert’s questions are: does he tap into his workplace pension at 65 while he is working? The answer is no, that would create too much income and therefore too much of a tax obligation. Should he tap into old age security at 65? Again, that would be clawed back by the government. Based on Robert’s income, assets and forecast retirement revenue, we determine that the optimal time to retire and begin collecting his pension at age 68.
To better understand your income, your assets and to develop a contingency income replacement plan, please contact our office to arrange a consultation. Simply call 519-670-3177 or email [email protected].