Retirement Life Goal – Analysis And Assessment Process

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

  • Consists all of your financial information
  • Collect, gather and assess your personal financial data
  • Financial data: Asset, Liabilities and Cash Flows for monthly expenses

RETIREMENT OBJECTIVE

  • Children’s education
  • Retirement lifestyle
  • Medical expenses
  • Leaving money for family

FINANCIAL POSITION ANALYSIS

  • Analyze all received financial data to understand client’s financial situation

 

INPUT

  • Input all data received into in house system

IDENTIFICATION FOR CAPITAL SHORTAGE

  • In house system will identify the capital shortage needed to meet retirement goals

CAPITAL SHORTAGE

  • Determine how to cover the capital shortage by retirement age through:
    • Spending less & saving more
    • Reducing taxes
    • Improving the rate of return on investment by changing investment strategies
    • Reducing or eliminating one or more target goals
RECOMMENDATIONS

  • Planners will give recommendations to you based on the proposed changes

 

FINANCIAL PLAN AND REVIEW

  • Generate the 1st draft financial plan and review together with client
  • Generate the 2nd draft financial plan and review together with client

CCA’S QUALIFIED FINANCIAL PLAN

  • Generate the final financial plan and get CCA’s licensed certified financial planner to review financial plan

 

ENDORSEMENT AND SIGNATURE

  • Present the final plan to client to get endorsement & signature

 

FINANCIAL PLAN IMPLEMENTATION

  • Assists client to implement their financial plan either with our in house financial planning solution or product or client may implement their own plan
  • Provide monthly Portfolio Performance Report to client

REVIEW FINANCIAL PLAN

Review financial plan in yearly basis

TEL : 603 – 7984 8988
WEBSITE : www.ccadvisory.com.my


Like this article? Visit our newsletter for more.

For similar future events,  

Visit our Facebook page or subscribe to us to get more information.

Share with your friends & colleagues