Almost every advisor claims to do some form of financial/retirement planning.  Few if any will dare say it is “comprehensive” because of what a comprehensive plan must entail.  I am going to tell you a real-world scenario about comprehensive planning.

A client reached out to tell us they were moving from their beloved home in the country to an upscale retirement community.  There were some different conditions and terms on down payment and the client wanted to keep the mortgage payment as low as possible.  The client came to us to find out what pulling $250,000 out of their IRA would look like.

We jumped on it and ran a new scenario showing the large amount of cash coming out.  Fortunately, the client has plenty of assets and that wasn’t going to be the real problem, it would be the taxes.  We modeled two scenarios, one with the whole amount coming out now and one in which we took half this year and the other half in the very first part of next year.

We let the client know again about our concern about the taxes and our desire that he run it past his account.  We were able to not only produce a cash flow chart showing the impact on his cash flow but also the approximate tax obligations.  Finally, we re-ran the whole plan again using the Monte-Carlo Simulator and the client was still at the 99% success rate!

Comprehensive planning is more than spreadsheets or one page score sheets, it is a detailed plan that looks at the whole picture.  It helps you live your life on your terms.

If you are interested in learning more, call us at 256-417-4870 or 813-522-4455

Decide. Plan. Live.

Mike

About the Author: Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC, and an avid sporting clay competitor. Our firm provides personalized planning and investment services to individuals approaching and in retirement. Disclaimer: This content is intended solely for informational purposes. CochranMickels Retirement Specialists, LLC and its representatives are only authorized to offer advisory services where properly licensed or exempt from licensure. Investing carries risks, including potential loss of principal capital. Our firm does not endorse external links, nor is it responsible for third-party content