Sample Plan - Free Financial Plan by Anasova - Report - Page 14

Are You On Track?
Recap
Here is a quick recap of the high level data you gave me:
Age: 37
Cash: $35,000
Retirement assets: $260,000
Investment assets: $125,000
I'll run a test using these gures and assuming you follow my recommended path...
Life is not a straight line. Neither are markets and investing. A number of things will change over the next 10, 20, and
30 years. Therefore, I believe it is much more effective to focus on ranges and targets than to try to use speci c
numbers. Here is the way I approach retirement:
How much you need
Your top-line income is $200,000. But this number doesn't have a lot to do with what you need in retirement. Taxes
will be much less and you will no longer need to save. I'll start with $11,000 per month on a net, after-tax as the initial
goal. I know everybody would always like more, but it is a good starting place for discussion.
Your target
You anticipate total income in retirement of $3,000 per month.
You need $11,000 per month.
This means that you have a monthly gap of about $8,000.
The minimum you need
It is unlikely you can begin retirement planning discussions until you hit a total portfolio value of at least $1,212,000 (in
today's dollars). Before that all reports will say the same thing: you are likely to run out of money.
Why?
Because if you spend $8,000 per month you are spending about 8% of the portfolio per year.
To support that level of distribution you have to have an aggressive asset allocation.
We also have to factor in taxes, in ation, and the risk that markets go up and down.
How soon would you run out of money?
Of course it is hard to say and depends on a number of factors.
A reasonable range is that your money would likely last 15 to 30 years.
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