Retirement Planning

Providing for your family places great demands on every dollar you earn throughout much of your working years.  Additionally, for business owners, we understand that most, if not all, excess cash flow needs to be reinvested back into your business.  Furthermore, the axiom that lifestyle expands to meet the dollars allotted to it generally rings true.  Careful asset management is critical to balancing these conflicting needs.  
We at RSI have found that having a clear understanding of what might happen over time greatly enhances your probability for success.  Working with us and leveraging our experience, our clients learn to harness the power of time and embrace the mindset of “paying yourself first”, the two most important factors in long-term wealth accumulation.  The years fly by and the shorter the time period until your retirement, the more difficult it is to accumulate sufficient assets to retire Financially Independent
At RSI, we view Retirement Planning in two parts, Accumulation and Retirement.  It is important to understand that the quality of the first part determines the quality of the second part.

Your working years are when to accumulate assets for becoming Financially Independent, which we feel is the ideal state to achieve prior to ending your full-time work.  Through your Accumulation years, we ask questions and analyze various factors, including:
  • What assets currently exist that can be allocated toward achieving Financial Independence?
  • How much discretionary income is there, and how can it best be allocated over time, with serious consideration for taxes*, which both diminish the amount available to be invested and impair growth?
  • What assets are likely to come to you in the future from outside sources?
  • What other outside sources of income should be considered (e.g. pensions, Social Security, passive real estate income, income from trusts, and any other sources)?
  • How much time is there from today until when you want to achieve Financial Independence?
With effective strategies, you should not have to reduce the quality of your lifestyle in retirement because you lack sufficient funds to meet your desired & required expenses.  We also believe no one should have to systematically deplete their assets over time, but, rather, should have the opportunity to grow and preserve their assets throughout retirement.
For business owners, we typically uncover undeveloped or unknown opportunities to accumulate money on a tax-preferential basis.  We are able to implement strategies that allow pre-tax dollars to compound tax deferred to meet your long-term goals.  Tremendous leverage can come from the compounding of money that would otherwise have been lost to various taxes.  
Through our analyses and projections, for the first time you will see what is likely to happen if you continue on your existing course.  Then, through our work together, you see the range of outcomes that become possible through the implementation of our strategies.  Our analyses start with good old fashioned number crunching, showing the potential outcomes of various growth rates and timeframes, while factoring in all assets and sources of income.  People can gain a sense of comfort once they actually see this, and rarely have we met people who have done this for themselves.

When Can I Slow Down or Stop Working?

Knowing when to slow down or stop working isn’t easy or simple. Both lifestyle and financial position should be considered. You must look at all your sources of income to determine whether they can meet the costs of your future desired lifestyle. Your accumulated assets and your income sources must be analyzed. The preferred process first establishes how much cash flow is desired, then determines if it is reasonable to expect to receive it, and, finally, a plan is implemented to make it happen.

Additional Resources:
Business Succession or Exit:  How to begin documenting a sound written plan for transfer of ownership and management
Life Cycle Events

* Any tax discussion is for informational purposes only and is not intended to provide specific advice or recommendations. Please consult your tax advisor for specific tax advice.