F I SCAL FI TN ESS
MICHAEL J. DONNELLAN King Financial, Inc.
SAVING FOR RETIREMENT One of the biggest questions our clients ask is “How much do I/we need to retire?” The question sounds simple enough, but is complex in so many ways. Each client is different. Spending habits, lifestyle changes, working part time in retirement, health concerns, planning to travel or buy a vacation home, leaving assets to heirs or charities, etc. The list goes on and on. Much of our retirement spending discussion actually takes place before the client retires. Some will say you need to replace 75% of your pre-retirement income. But that is too generic for all clients, who have different goals and risk levels. What we have found is that it works much better to create an actual retirement budget once the client is within shouting distance of calling it a career.
12 | Official Publication of The Ohio Landscape Association
We also have to determine how to draw down the savings in retirement. One client may want the account to continue to grow and draw a smaller amount. Another may want to spend down the account over time. We had a client recently say they wanted to travel now, as they didn’t want to be strolling on the beach with a walker in hand. continued on page 14