by Carolyn Rothwell on December 18, 2012

Silver Financial Planner – Handling Semi-Retired Clients


It’s not uncommon to have clients that will go through a phase where they will be “semi-retired”, where they will stop  earning their full pre-retirement salary, but continue to earn income at a reduced level before they fully retire. 

Let’s look at this question to technical support as an example:

I have a client who is going to semi-retire from his in 5 years, and then work an additional 5 years earning a reduced salary.  How do I make both entries to include his current earnings and the reduced future earnings in Silver?

To handle this situation, we suggest setting the client as retired in 5 years when he reaches semi-retirement.  The program will stop his current earned income at the retirement age.  Then, to capture his reduce earnings for another 5 years, go to the Income/Expense section and open the Special Income Planner.  Enter a description like Reduced Future Earnings or Semi-Retirement Earnings, enter the after tax amount and increase rate.  The first year of income would be 5 years from now and number of years 5.  This will account for the higher earnings for the next five years and capture is reduce earnings for the following 5 years.

SpecialIncome

If the client will contribute to assets during the semi-retirement period, one other adjustment needs to be made.  By default, additions to assets stop at retirement age.  You can override this default assumption by using the “starting year” and “number of years” data input fields on the asset input.  Enter the start year as the current year, and the number of years to reach the clients full retirement age.

AssetAdditions

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance of financial planning.