Does the Financial Road Map® differentiate between the resources used to fund Goals vs. those used to fund Lifestyle?

Article ID: 328

Last updated: 20 Nov, 2019

Current lifestyle is funded from cash flow. Future goals from savings and investments. Only a person who is no longer working and living off their assets will have a goals related to “maintaining our lifestyle” which would be funded from assets.

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If the customer doesn’t think of a tangible goal that should be considered, do you recommend that we continue to set goals until it’s identified or should we offer suggestions?

Some of my best clients are those who have retired and are using their pension lump sums to fund their retirement income. The markets since 2007 have eroded over half of their pension asset and now their monthly incomes are in real jeopardy of running out. Six years after retiring they may have to go back to work. How can I re-set the stage with them when their goal was to have enough money not to worry and now clearly they do not?? And how do I ask them what their goals are considering that their most fundamental goals are no longer working out.

What should you do if a client's goals are unattainable or unrealistic? I have some clients who are looking for unrealistic levels of income from their retirement portfolios. How would you handle an Implementation Meeting Conversation™ if your analysis shows the goals, as the clients stated them, are not realistic?

As I’m reviewing the Financial Road Map® Interview should I be taking notes on the details of the goals as they are talking about them? For example, the client is talking to each other about how much money they will need for a down payment and which neighborhood they may want to live in and how much they can expect to net from the sale of their current house and how they would get the additional funds needed from traditional loan, from family. Should I add that detail to my CRM? Use it to build the financial plan? Is there a difference if I’m listening only to improve my skills or listening because they hired me and am listening to make sure I “get it right for them”? Thoughts?

What if their goals are out of line with their resources and/or expectations? This is not always obvious to us in Financial RoadMap interview. What is your recommendation for addressing after you've already done the plan?

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