"Can I Retire?"

Planners Title (planner's focus):
Projecting Retirement Income for a Client

Personal Title (client focus):
Will I Be Able to Retire When I'm 65?

Case background:
I was visited by a young, single female who had a deep urgency to determine if she could retire at age 65.  She had approximately 20 years to go and was very nervous that she would not be able to retire and not have a place to live. 

What happened in the meeting:
I divided the meeting into 2 sections.  To start off, I said, "How did you compute your shortfall in retirement?" She said that, "I had used various calculators on the Internet, and there would be no way I would have enough money to live."  I asked her, "Do you know how much you spend a month now?" and she replied, "No, I'm not sure." I asked her, "Do you ever wonder where the money goes?" and she said, "Absolutely." I put the Bernie Book on the desk, the one with shock page and we ran through a hypothetical expense list for her at retirement using today's dollars.

How did it turn out?:
By the time we finished the Bernie book, the client had a firm handle on approximately what she would need at age 65 using today's dollars.  We then calculated her potential retirement income from social security, pensions, and her individual retirement accounts.  We determined that she will have most of what she needs by following her current savings pattern.

Notes to myself on the meeting:
I will fine-tune these retirement projections based on today's dollars and inflate them into the future 20 years later.  I will also perform certain investment calculations using a diversified portfolio to see if we will be able to accommodate her total income need at retirement.

Unexpected Revenue:
During the conversation with the client, it was revealed that she had additional capital in a savings account that she would like my firm to invest for her for future purchase of a home.  In addition, we will be able to offer mortgage quotes to her when she is ready to purchase the home.