The writing is on the wall

DECEMBER 17, 2021


Five reasons you need a written financial plan for retirement 

A recent survey Jackson co-sponsored found that three-quarters of financial professionals say that written financial or retirement plans are extremely or very important in building trust with their clients.1

Here are five reasons why you and your financial professional should put your plans in writing:

 

1.) A written plan serves as a reminder.

You may find it difficult to remember all of the points stated in various meetings with your financial professional.  A written report addresses that problem.

 

2.) A written plan keeps you on track.

It provides a tangible record of what the plan is. Further, it shows (hopefully) that you are either on track or that there is a plan to get on track. Finally, it can demonstrate a path forward and is a benchmark of where you are and where you are going.

 

3.) A written plan can work like a barometer.

As a tool, a barometer forecasts the weather and determines altitude. A written plan can work in a similar way, as a record of your projections of assets and income for every year throughout retirement. Sunny or stormy, you want to know what lies ahead. 

 

4.) A written plan can be a security blanket. 

Many investors become concerned by inevitable market downturns that occur periodically. Having a plan to refer to can feel like a security blanket and is helpful in these circumstances. Isn’t this better than making a panicked call to your financial professional every time the market dips or drops? 

 

5.)  A written plan provides a valuable metric.

If your plan is detailed, it can provide a  clear metric that you can refer to during the year and can help you make decisions about basic things like discretionary spending.  It can keep you grounded. 

 

Need more reason to put your plan in writing? The same survey referred to above found that over two-thirds of consumers who have received a written financial plan say their plan was effective in accounting for their risk preferences, their investment plan, and how to fund financial goals.

If you don’t have a written financial or retirement plan in place, talk to your financial professional.  From key reminders to vital reassurances, the writing is on the wall when it comes to the value of a written plan.  

1. Greenwald Research - 2021 Retiree Insights, July 2021

Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York, annuities are issued by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact the Company for more information.

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company®, and Jackson National Life Insurance Company of New York®.

Tom Hurley, Phil Wright, and Ashley Feltner are affiliated with Jackson. All other authors are not affiliated with Jackson.