PLANADVISER - May/June 2019 - 42
beyond(k)
Whatever Suits
I
Retirement readiness discussions need to fit the participant
t's in the news almost daily: Many Americans are simply
unready for retirement-whatever their notion of retirement
may be. Yet, depending on their personal circumstances
and retirement goals, many may be readier than
those nay-sayers believe.
To gauge " retirement readiness " -loosely, having enough
money saved to translate into adequate income-plan sponsors
and participants often look to online calculators. Many
of these, though, fail to factor in key personal financial
information, which is needed for an accurate assessment.
This is where plan advisers can step in to discuss readiness
with plan participants.
Michael Foguth, founder of Foguth Financial Group in
Brighton, Michigan, says the No. 1 determiner of retirement
readiness is not the person's total assets but how much
income he will need. " It's a misconception that people have
to save a certain dollar amount or save for an 80% income
replacement rate, " he says. " How much people need differs.
It could be 80%-or more or less. "
Tracy Amabile, general manager of human resource (HR)
services at Conduent in Atlanta, agrees that the necessary
income replacement ratio will be different for everyone.
" Seventy percent to 80% can serve as a good rule of thumb
but cannot be used for each individual's planning, " she says.
According to Amabile, retirement readiness is more
a function of money outflow than just of compensation.
Factors that must be considered are fixed expenses such
as housing and debt-servicing costs, plus variable expenses
such as travel. " Comparing projected expenses with available
assets ultimately determines whether an employee is
ready to retire or not, " she says.
Beyond Calculators: Lifestyle Factors
When an adviser discusses retirement readiness with a
client, says Dan Hernandez, a Certified Financial Planner
(CFP) and senior financial representative at Lincoln Investment
in Voorhees, New Jersey, he needs to ask about the
person's current lifestyle and spending. " When some people
retire, their mortgage or consumer debt is paid off, so they'll
need less money in retirement. But not everyone plans that
way or can achieve that, " Hernandez says.
Advisers also should ask about plan participants' life42
| planadviser.com May-June 2019
Art by Jillian Tamaki
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PLANADVISER - May/June 2019
Table of Contents for the Digital Edition of PLANADVISER - May/June 2019
Advisers' Future Trajectory
Tangled
2019 PLANADVISER DCIO Survey
High-Tech Meets High-Touch
Whatever Suits
New Platforms Support ETFs
Major Cases
Good News for P.R. Plans
Denial of Benefits
The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C1
PLANADVISER - May/June 2019 - FC1
PLANADVISER - May/June 2019 - FC2
PLANADVISER - May/June 2019 - C2
PLANADVISER - May/June 2019 - 1
PLANADVISER - May/June 2019 - 2
PLANADVISER - May/June 2019 - 3
PLANADVISER - May/June 2019 - 4
PLANADVISER - May/June 2019 - 5
PLANADVISER - May/June 2019 - 6
PLANADVISER - May/June 2019 - 7
PLANADVISER - May/June 2019 - 8
PLANADVISER - May/June 2019 - 9
PLANADVISER - May/June 2019 - 10
PLANADVISER - May/June 2019 - 11
PLANADVISER - May/June 2019 - 12
PLANADVISER - May/June 2019 - 13
PLANADVISER - May/June 2019 - 14
PLANADVISER - May/June 2019 - 15
PLANADVISER - May/June 2019 - 16
PLANADVISER - May/June 2019 - 17
PLANADVISER - May/June 2019 - 18
PLANADVISER - May/June 2019 - 19
PLANADVISER - May/June 2019 - Advisers' Future Trajectory
PLANADVISER - May/June 2019 - 21
PLANADVISER - May/June 2019 - 22
PLANADVISER - May/June 2019 - 23
PLANADVISER - May/June 2019 - 24
PLANADVISER - May/June 2019 - 25
PLANADVISER - May/June 2019 - Tangled
PLANADVISER - May/June 2019 - 27
PLANADVISER - May/June 2019 - 28
PLANADVISER - May/June 2019 - 29
PLANADVISER - May/June 2019 - 2019 PLANADVISER DCIO Survey
PLANADVISER - May/June 2019 - 31
PLANADVISER - May/June 2019 - 32
PLANADVISER - May/June 2019 - 33
PLANADVISER - May/June 2019 - 34
PLANADVISER - May/June 2019 - 35
PLANADVISER - May/June 2019 - High-Tech Meets High-Touch
PLANADVISER - May/June 2019 - 37
PLANADVISER - May/June 2019 - 38
PLANADVISER - May/June 2019 - 39
PLANADVISER - May/June 2019 - 40
PLANADVISER - May/June 2019 - 41
PLANADVISER - May/June 2019 - Whatever Suits
PLANADVISER - May/June 2019 - 43
PLANADVISER - May/June 2019 - 44
PLANADVISER - May/June 2019 - 45
PLANADVISER - May/June 2019 - New Platforms Support ETFs
PLANADVISER - May/June 2019 - 47
PLANADVISER - May/June 2019 - Major Cases
PLANADVISER - May/June 2019 - 49
PLANADVISER - May/June 2019 - Good News for P.R. Plans
PLANADVISER - May/June 2019 - Denial of Benefits
PLANADVISER - May/June 2019 - The Cost of Advising One's Own Plan
PLANADVISER - May/June 2019 - C3
PLANADVISER - May/June 2019 - C4
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