Nobody wants to deal with the fact that many people who are investing have no way of achieving their retirement dreams. Every investor expects to retire. When they invested $25,000 into that mutual fund and the advisor collected their commission or fee, there existed the expectation of being retireable. The reality is very different.
Without analysis of what it will require for a couple to retire, investing become a futile attempt to appease unrealistic expectations. The client assumes retireability and the advisor ignores the reality and maintains the false expectation. This relationship has to change. Advisors must require the analysis up front before any investment and honestly explain what contributions will be required yearly to achieve retireabilty. A systematic investment plan must be put in place at the start to remove any false expectations that will become a liability for both the client and the advisor in the future.
Each year the expectations need to be reviewed in light of the circumstances surrounding a couples life. Windfalls, salary increases, and new opportunities can shorten their retirement date. Market corrections, layoffs, or large purchases can increase the time required to retire.
Because of these factors, retireabilty is a dynamic factor and needs to be monitored yearly. Making a goal to retire every client early is worthy, yet requires effort and diligence. Using an annual review to access retireability and incorporating a systematic investment plan can help any client achieve the dreams they desire.