Exit the rat race and enjoy the retirement of your dreams

Wealth & Tax Management

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by TONY BYRNE Managing Director, Wealth & Tax Management

YES, this is a very bold heading and many readers will not believe it is possible. But believe me it is.

How do I know? It is because I have advised literally hundreds of people over the years, many of whom have retired early and enjoyed wonderful retirements.  Many of them did not believe it was possible but I was able to persuade most of them that they could do it and plenty did.

Why do most people not think it is possible? In my experience, it is because they do not have a plan.

We work with clients annually. From the very start of our relationship, we put together a financial plan for each and every one of them known as a lifetime cash flow forecast using our Money Forecast software. 

It is much like putting together a cash flow forecast for a business. The difference is that it is for an individual or a couple and it is designed for the rest of their lives. In fact, we put together forecasts to the age of 100.

We gather clients’ financial information in respect of what they own, what they owe, how much they earn and how much they spend. We produce a net worth statement, which is like a business balance sheet and an income and expenditure summary, similar to a business profit and loss account or a cash flow projection.  

We make certain assumptions about interest rates, inflation, growth rates and so on.  All of our assumptions are conservative. We agree certain ‘what if’ scenarios with clients. We then produce the plan. We update the plan in a face to face meeting with each client annually. 

As a result clients know exactly when they will retire and they know they can afford it. This is why they achieve their retirement targets time and time again. It is also why many of them live dream retirements.

In my 30-plus years of advising clients, I have yet to find one who does not enjoy retirement and that includes a number of clients who were dreading retirement beforehand.

Tony Byrne is a chartered and certified financial planner, a chartered wealth manager and author of Wealth Magic.