In this week’s FPF episode, I wanted to discuss something that all our clients want to know—how much can I spend each year in retirement? The answer depends on a variety of factors, and it is important to consider all of them before coming to an answer. Please let me show you how we do this at Presilium.

We create a financial plan for our clients that includes everything that will add to their income during retirement including the things listed here as a starting point.

The plan also includes everything for which they will need to use funds:

The financial plan that we create for each client is then able to look at their current investment mix, factor all the items adding or taking away from their savings and then calculate how often our clients can reach that financial goal over 1,000 different historical market scenarios.

This creates a page that looks like this with an exact percentage chance of accomplishing each of their goals.

Though everyone’s situation is unique, we feel great about the plan when it is in the green zone for all our client’s goals. This gives us the confidence that they will be able to accomplish their goals even when the market is not performing well. It is much easier to make financial decisions when we can assign a current probability to each one.

The plan we create produces an easy-to-read document that maps out year by year where we expect to be, alongside our ideas on how we can make each plan look even better.

Shockingly, a relatively small percentage of Americans have ever had their own financial plan created, however, at Presilium, we view it as something that is absolutely necessary before making any long-term financial decisions.

Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.