RETIREMENT LIFE GOAL – THE ANALYSIS AND ASSESSMENT PROCESS
The Life Goals Analysis is a tool that allows you to identify if you are on track to achieve your personal goals and objectives. The analysis provides a snapshot of your entire future financial life. It identifies all anticipated sources of income, such as employment income, government and company pension plan benefits, investment income, as well as any special sources of money you may have identified.
The analysis also identifies all anticipated expenses. This includes living or “lifestyle” expenses (both before and after retirement), income taxes, savings, your mortgage payments, expenses to educate your children and any one-time expenses you might predict, such as the purchase of a boat, cottage, kitchen renovation etc.
By identifying all sources of income and all expenses and recognizing the timing of each, it is able to identify any year when you’ll have a shortfall (more expenses than income). In these shortfall years, money in your investment portfolio is used to cover these shortfalls. If there are insufficient funds available in your portfolio to fill the shortfall in any given year, then the shortfall is “real”. When you have a shortfall that is “real”, you can only eliminate it by changing one of the variables that you can control. These controllable variables include:
- Saving more and spending less
- Reducing your taxes
- Improving the rate of return on your investment portfolio by changing your investment management strategy
- Reducing or eliminating one or more of your goals
By making one or more of these changes, you can go from a shortfall to a surplus. When you have a surplus (identified as an “Estate”) it means that you would achieve all of your goals and objectives, with something left over at the end your planning horizon.
PROCESS FLOW FOR RETIREMENT LIFE GOALS
|PERSONAL FINANCIAL DATA
FINANCIAL POSITION ANALYSIS
IDENTIFICATION FOR CAPITAL SHORTAGE
FINANCIAL PLAN AND REVIEW
CCA’S QUALIFIED FINANCIAL PLAN
ENDORSEMENT AND SIGNATURE
FINANCIAL PLAN IMPLEMENTATION
REVIEW FINANCIAL PLAN
Review financial plan in yearly basis
TEL : 603 – 7984 8988
WEBSITE : www.ccadvisory.com.my
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