One partner often works longer than the other. How do you position that in a Retirement Target-Map? Please review some ideas below.
Enter the following information on the What you Want page
Consider Retirement as a Project.
When does the retirement project start (date or age)? Align this date with the person who wants to stop work.
When do the golden years end (date or age)? You might need to align this with a younger spouse, but maybe not.
How much in annual expenditure is desired during the golden years for the two of them?
Select the individual that will provide the start age or date (the "first" person to retire).
Whose age ends the project (end age or date)? You can add Cashflow desires and assign it to the other individual.
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Enter the following information on the What you Have page
Apply Retirement-related Assets
Include assets that will be utilized to fund the desired spending. Adjust loss to tax accordingly. Click the check box that is aligned with the asset to apply the funding. Retirement would likely use both partner's retirement assets. Retirement funding is not distributed. There is no accomodation for distributions in Target-Maps. We assume all of the asset is being used to fund all of retirement.
Apply Cashflows that occur during the timeframe
Adjust the start age of funding sources to align with the their golden years. This would not only include Social Security and Pension, but also the working partner's income, as well as the working partner's contributions. Align the start and end ages with the age on the What you want page.
In the example below, Social Security incomes are elected by the client at their age 67, but could be different depending on your advice. Run Target-Map clones to illustrate various scenarios.
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Tags: distributions, target-maps, older, younger, plan, funding, rate of return
2/2025