Weekly Observations for 2/23/2018 — Living to 120

This week’s observations were inspired by Ric Edelman’s comments at an advisor conference earlier this month:

“Your clients are going to live to 120, and if you haven’t built that into your financial plan, you’re not running accurate projections for them.”

He went on to say that the traditional retirement timeline of working, saving and retiring will become more cyclical (in my experience, it already has), with people retiring from a career, taking some time off, and then pursuing a new career or other venture.

Here are a few of my personal observations as I think through client timelines and the conversations we have on a regular basis.

–  I’ve been running client lifetime cash flow projections out to age 100 for as long as I can remember, but haven’t tried 120 yet. Watch for a new “longevity” analysis as we continue our work going forward.

–  Some of the best conversations I have on a regular basis are business planning discussions with clients in their 60’s and 70’s.

–  About half of our “retired” clients don’t draw a regular income from their investment portfolios and retirement accounts. And a portion of these clients actually makes new investments from excess cash!

–  Clearly, the traditional concept of retirement is shifting, and perhaps at just the right time if Ric’s view of our longevity comes true. As a young man in my 40’s, with 40 more good working years ahead of me (God willing), this is an exciting timeline to walk with you!

Today is my daughter’s 16th birthday, and I’ve been celebrating her all week! What a joy to see my little girl growing up and getting ready to soar. I hope Ric is right — I would love to be a witness to her life until I’m 120.

All the best,