CASH FLOW PLANNING
COMPREHENSIVE AND CUSTOMIZED FINANCIAL PLANNING IS CRITICAL TO CREATING A ROADMAP THAT WILL GUIDE CASH FLOW AS SEAMLESSLY AS POSSIBLE
Travel. Trust Funds. Taxes. Tee times. For clients who are approaching retirement, future expenses often lurk in unexpected places. That’s why comprehensive and customized financial planning is critical to creating a roadmap that will guide cash flow management as seamlessly as possible.
The Baby Boomer generation – loosely defined as people born between 1946 and 1964 – is either rapidly approaching this life stage, or well-settled already. More than half of Clearstead’s clients fall in this category, giving us a wealth of experience in guiding people toward a thoughtful cash flow plan for financial independence.
Are you financially independent, and if so, at what age? If not, what do we do about it?
Beyond investment strategy, a solid retirement plan takes a holistic view of a client’s situation, including assets, short- and long-term goals, and the many variables that make each person’s needs unique.
It’s worth noting that while Clearstead prides itself on starting with a long view of retirement – sketching out a plan that looks 20 or even 30 years into the future – we also review that plan often – especially during significant life events such as a job change or a spouse’s death.
When creating a retirement cash flow plan, some factors that clients frequently overlook include
Educational expenses for grandchildren
Many clients underestimate the amount they will contribute toward college tuition and other related costs for grandchildren, but this is a common expense.
The ClearSight Analysis
With our existing clients, Clearstead’s team of professionals builds a comprehensive overview of that person’s income streams and expenses. We factor in assumptions such as how aggressive a client’s temperament is for investing, and we look at issues such as when a particular income stream – for example, from an inheritance, or from Social Security – is likely to enter the fray. We ask questions like whether downsizing a home is a cost-effective strategy, whether a second or third home is something to consider acquiring or selling, and whether a life event such as a child’s wedding might factor into future cash flow needs. These assumptions are typically the largest and most varied section of an individual’s profile.
Our analysis helps us ask questions, so we better understand our clients’ positions: are funds depleting at a rate that causes concern? Or do funds back up and create questions about where that money will eventually go, such as to heirs or a charity, or both, and in what proportions?
Tax and Charitable Giving Strategies
Because we complete clients’ tax projections and returns, we can help optimize assets between retirement and taxable accounts. When the time comes to pull assets from one or the other, we can analyze which choice offers the most tax efficient strategy.
We can also determine the most strategic time for charitable giving in relation to the client’s tax profile, and assist with Social Security optimization: is it better to collect a lower payment at an earlier age, or wait until later?
Our goal is to create a plan that provides our clients with the comfort that we have planned for unforeseen events, such as a sudden death or a divorce. If that happens, we’re here to help you pick up the pieces and find a path forward. Clearstead isn’t just an investment advisor; we are trusted stewards of all aspects of your financial well-being.
Find Your Clarity
Clearstead is structured to put client's interests first through our fee-only advisory model. Clearstead is independent and believes this is central to providing objective advice to clients.
Clearstead is an institutional and private client advisory firm that is relentless in providing solutions so our clients can exceed their aspirations and build stronger legacies for their families, their communities, and themselves.
1100 Superior Avenue East
Suite 700 | Cleveland, Ohio 44114