Life Goals Planning
Life Goals is a process that takes a number of separate goals expressed by a client then looks at the inter-relation of these in determining a strategy. This process starts with a dialogue with the client to help them understand the relative priority or the hierarchy of their goals – which goals are more important than other goals.
The same priority ranking explained above in relation to modular planning is used, thus this dialogue can be undertaken whether you are doing modular planning or doing Life Goals. One benefit when doing the life goals approach is that the priority ranking of the various goals is automatically taken into consideration during the “Auto Model” process. This means that the Web Advisor can use this information to automatically account for the trade off of client goals whereas in modular planning it become a point of reference for the advisor to then manually adjust relative settings between the various goals.
Further, in the Auto Model screen the client or advisor can indicate potential additional savings available for any goals, or how long the client would be willing to delay retirement, or if they would rather work longer to maintain a lifestyle or stick to a target retirement age and settle for less money.
In a practical sense, in the case of Dmitri & Lydia, they are saying they are prepared to delay their retirement if necessary in other to help fund their daughter’s education and managing the payments on their new car and the upgrade to the house.
Other forms of planning: