Help your clients find their “Independence Day”
Investment Executive - Maddie Johnson
When setting a retirement date, several factors must be considered, including clients’ goals, circumstances and worst-case scenarios for many clients, their retirement date is the day upon which most of their financial planning hinges. While many people still plan to retire on their 65th birthday, some folks adjust their date as it approaches, while others begin planning early to retire at a much younger age.
“We call it a ‘wish date,’ but there’s no firm deadline,” said Ngoc Day, financial advisor with Macdonald Shymko & Co.in Vancouver.
Regardless of a client’s situation, the age at which they retire will affect their finances profoundly, and it is a decision only your client can make. From a financial standpoint, Day refers to the retirement date as financial “Independence Day.”
“It is the day where the client has the financial strength to walk away from work, if they want to,” Day said. From that point, work becomes optional, she said.
In Day’s experience, when a client has achieved that financial independence, or at least has a plan to get there, a burden is lifted from their shoulders. “It gives them that peace of mind,” she said.
Often, Day said, clients will continue working because they like the challenge. Others will switch to a hybrid model or work fewer days if the job allows. Conversely, a well-planned retirement also empowers the client to walk away earlier should something in their work or personal life change.