PANEL TWO: DEBT MANAGEMENT AND BUDGETING THE
01.Core Concepts
RETIREMENT SPENDING PLAN (BUDGET) (2 of 2) • Essential Versus Discretionary Expenses • The client should lead the identification of expenses • Planner should be a neutral, non-judgmental, guide • Essential expenses are those that occur on a regular basis • Food, Shelter, etc. • Discretionary expenses are those that can be delayed or adjusted • Vacations for example • Shortfalls through trade-offs • Working a few years longer, working part-time, modifications to the budget, etc. PANEL TWO: DEBT MANAGEMENT AND BUDGETING SPENDING NEEDS CHANGE OVER TIME (1 of 2) • The Go-Go Years • Expenditures may be high as there is time to do the things they have wanted to do • The Slow-Go Years • Expenditures will tapper off as they have accomplished some of their goals and may face some health issues • The No-Go Years • Spending levels off, but may rise again for medical care