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The Value of an Integrated Benefits Analysis

Practice Management

A sauce—be it pesto, hollandaise or bearnaise—is tasty because its discrete ingredients all work together in a rich whole. Similarly, many individuals finance their retirements, or plan to, through a number of means that all work together. A recent blog entry discusses the importance of analyzing how those retirement finance vehicles do that. 

In “Getting a Clear Picture of Retirement,” Edward Dressel, President of RetireReady Solutions, writes, “We have different sources of income for retirement, but we are not quite sure how they go together,” continuing, “the real question is: ‘How do these pieces fit together?’”

How the ingredients fit together is critically important, Dressel argues, warning, “Getting this wrong can create substantial problems in the future.” Enter the integrated benefits analysis, a way to see how retirement assets work together. “With the right picture, you are no longer looking at each retirement account independently,” he writes.  

There are three benefits to conducting an integrated benefit analysis, Dressel writes. 

It offers a clear understanding of retirement and a roadmap. 

An integrated benefit analysis can provide a clear look of what retirement would look like and where one is headed on the way there. This could provide reassurance, but it also could be a wake-up call. 

It is an ideal opportunity to ask questions and make changes.

An integrated benefit analysis is an opportunity to ask informed questions of a service provider, including what may need to be done to better prepare for retirement. 

What one learns may spell the option of early retirement if saving has been going well. Or it may serve as a catalyst to make changes, such as saving more, working longer, working part-time during part of retirement, adjusting investments, preparing to live on less income or selling assets. “The good news,” Dressel says, is that it is possible “to make the right decisions today to achieve a better outcome in the future.”

“You should be able to see how more than one change affects your retirement picture and be able to alter the illustration in different ways to better understand your situation,” says Dressel.

It is a chance to gauge progress toward retirement preparedness.

An integrated benefit analysis is an opportunity to assess progress in preparing for retirement. “In the years to come, you will be able to see how the adjustments you made have impacted your retirement picture,” says Dressel, adding that it can engender appreciation for progress toward that goal and confirmation and affirmation regarding decisions that have been made.