The CFA Institute recently sat down with Michael Finke, professor and director of retirement planning at Texas Tech University to discuss the current state of retirement in the U.S.
He noted that longevity risk continues to be among the most important concerns for retirees and those still saving: outliving one’s assets is a real risk that is very hard to manage. Additionally, the questions of retirement must be asked alongside questions such as: “do we have enough money saved?”, “are we invested the right way”, “will we be able to help our children / grandchildren?”.
At KH we view financial planning as an iterative, living process. We construct and implement an initial plan with clients, but from there our tools and our philosophy make ongoing scenario analysis, or even answering questions, a very quick and simple task. We use financial planning tools to help clients understand:
The importance of controlling spending and how much they are actually spending
Whether they are taking too much or not enough risk in their portfolios
How much they should expect to spend in retirement for healthcare and other living expenses
Other expenses they may not have considered, such as simple recurring automobile purchases
This article offers some great thoughts as well as a video to hear Professor Finke speak.
State of Retirement
Give it a look and let us know how we can help you think about and plan for your own retirement.