Confessions of a Planner
Can I afford to retire
Retirement Budgeting
Retirement Cash Flow
When you hear the word confessions automatically you think... oh boy this is going to be good. Don't get too excited as my confessions are pretty GEEKY. One question I'm often asked is "How did you get started as a planner" And this is actually a long story but I will point to a couple of characteristics or some may say quirks that tend to work as an advantage in my profession.
First when I was a young boy my Dad encouraged me to start a lawn mowing business. I went around to all of my neighbors and established accounts with a few of them. Soon I found I had more work than I could handle so I hired a few of my friends in the neighborhood to help out. I started this when I was 11 years old and moved from that community when I was 12. When I was 18 and just about to start college I re-connected with a friend from that old community and found that the lawn mowing business I had started was still going strong. That first experience of owning a business, watching it grow and continue to thrive after I was gone. That was and still is an inspiration. (Thanks Dad)
I've always been a bit obsessive about finance. When I would get my crusty dollar bills after mowing a lawn I would take them home and wash them in the sink. I would lay them out on the counter and blow dry them straight. I would bring them to the bank and deposit them in my savings account. At the time that savings account was earning 10%. Ahh the good old days.
Another little confession is that I am obsessed with numbers and counting. Let me give you an example of this little counting obsession. When I am driving down the highway I count the number of tires on the vehicles driving in the opposite direction. Now this is pretty easy when you just have cars and trucks with 4 tires each but when there are a lot of motorcycles and semi trucks it can really get your brain working quickly, not to mention that I am talking on my cell phone, messing with the radio, wiping one of my kids nose, handing the chap stick to my wife and drinking a cup of coffee....Just kidding :).
One last little confession and this one works into personal finance. I love budgeting. I know this really probably sounds weird to many of you but I am the dorky guy in the check out stand at the grocery store that has to input my debits into my palm pilot and categorize the expense at the time of check out. Let me tell ya this little quirk isn't very popular in the express lane. But when tax time comes and my CPA asks me how much I spent on......Well. I just love pulling out my computer and giving her the exact number down to the penny.
One question I am often asked by prospective clients is "can I afford to retire." And of course this starts our little retirement cash flow exercise. In order to do justice to a retirement plan and be able to confidently answer the question of "DO I HAVE ENOUGH" its critical that we understand your expenses. Now I have found that most people don't want to and are not going to carry around a palm pilot and enter and categorize every transaction in their life. So I have found a free Internet tool for those who have embraced technology that can do this for you. If you would like to get a clear picture of where your money is going try using http://www.mint.com/. Mint automatically will grab transactions from your bank account and categorize them for you. To really get the full effect try to use your debit card and no cash for 90 days on purchases so you can really get this tool dialed in. After 90 days Mint.com will have some very detailed reports to help break down just how much money you are really spending every month and where that money is going. I have to say its always a shocker to see just how much of our money Central Market is getting. Now I know some of you are thinking this is just a little to big brotherish for me. And I have to admit that even for a geeky techno money manager I was a bit hesitant to trust so much of my personal info over the Internet. But I got over it and so far so good. I have been very pleased with how this budgeting tool works. This method may be a little to high tech or for some of you. Another alternative is to do it the old school way. The old school way may not be as accurate but it will get us going in the right direction. For those of you that are looking for a good old fashioned paper budget data gathering form I have included one here.
After completing the form please give me a call and give me the opportunity to crunch the numbers for you. After we understand your expenses we can start to look at pensions, social security, investment income and really start to paint a retirement cash flow picture that will keep you sleeping well at night.
Jason Parker is the President of Parker Financial LLC a fee based registered investment advisory firm specializing in wealth management for retirees. His office is located at 9057 Washington Ave NW #104 in old town Silverdale, WA 98383. He holds the series 65 securities license as well as being licensed to offer life and health insurance in Washington State. For more information please contact Jason at 360-337-2701 or online at www.parker-financial.net. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The opinions and information presented do not constitute a solicitation for the purchase or sale of any securities. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.
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