How Much Do You Need to Retire?

Wednesday, May 3, 2017 |

That is probably the most popular question in financial planning.  The answer is totally dependent on everyone’s own financial facts and circumstances.  The two most common statements we hear from client are “I think I need X amount to retire” or “I hear that I should assume 80% of my living expenses”. 

The former is usually a shot in the dark, just a guess based on spending habits.  The latter is normally a fallacy as high net worth clients typically spend just as much or more in retirement.  Additionally, there are a lot of moving parts clients often fail to properly account for: asset growth rate, buying/selling non-investment assets and the expenses associated with that (e.g. houses), social security/pension, taxes, inheritance, etc.

No one needs to wander into or drift through retirement wearing blinders.  This can all be quantified, resulting in a clear roadmap that guides clients through all the variables of their financial lives.  CFM Horizon® is our proprietary tool that models our client’s future prospects by booking a client’s cash flow and balance sheet to assess the probability of meeting their long-term financial goals.  This way the client can see how their finances are trending based on their inflows, outflows, and asset base at a very conservative rate of return.  When considering the assumptions, we prefer to err on the side of caution (i.e. plan for the worst, hope for the best).

If the initial model turns up vulnerabilities, we can develop strategies to mitigate them.  CFM Horizon® is what provides both our clients and us the comfort to sleep at night because we know we have a game plan for any foreseeable hills and valleys.  Ultimately, the model provides perspective and vision by potentially eliminating the guess work and giving a top down look of the client’s financial affairs, both now and into the foreseeable future.


There is no guarantee that any strategies offered will result in a positive outcome.  All investing involves risk and no investment strategy can guarantee a profit or protect against loss, including the potential loss of principal.