For example, at Thorley Wealth Management, we like to work with clients to have them define their ideal retirement, recognizing that it could involve several or many phases.
Commonwealth Financial Network provides us with a questionnaire that we often use as a rough guide. It includes questions along these lines:
- What would your ideal day be like in retirement?
- What interests do you have that you may not have had time to explore while still working – and will you want to incorporate these interests into your retirement?
- Do you plan to downsize or to consider relocating?
- Are you considering part-time work or volunteering?
- Will you travel more, go out to eat more, or take in more entertainment venues in retirement?
- Do you need upfront capital, perhaps to start a business or buy property?
As you can see, these are non-financial lifestyle questions, but the answers are important in helping to design a financial plan that allows a client’s vision to be realized.
In the next blog, I’ll look at a very underrated part of the retirement financial plan – the distribution phase.