New Client Onboarding Center

2 ways you can begin to define how much you’ll after-tax income you’ll need to live on in retirement.

1. Rule of Thumb (a.k.a. “Back of the Envelope”) Approach: 60%-80% of your current pretax income. In retirement you won’t have many of the same expenses you may have now such as 401(k) savings, commuting to work, and the expenses associated with raising children. Depending upon your lifestyle in retirement, these may be replaced with more spending on meals and entertainment.Tip: if you’re more than 15 years from retirement, consider inflating your current income over the number of years until your retirement. Then use 60%-80% of that value. Use our Future Value calculator assuming an annual inflation rate of 2.5%-3%
2. Expense Estimate Approach: Add up your monthly estimated expenses across various categories. Expenses may include bills & utilities, groceries, meals & entertainment, memberships & subscriptions, anticipated debt service, etc.). Don’t include medical costs at this point.

CLIC Client has a feature that will allow you to enter itemized expenses. See the CLIC Client Organizer Overview Guide for instructions on entering expenses individually via CLIC Client.(see Additional Resources for Navigating CLIC Client)

You may also use the following sample budget tools to do a rough estimate of various expenses:

To help you estimate an education goal, we compiled a list of different colleges and universities and their respective costs (2020-2021 school year). You’ll want to enter the amount that you would expect to cover from savings/investments: Examples:

• Parents plan to cover 50% of the cost with the remaining 50% covered by through earnings from employment, student loans, scholarships, etc. Enter ½ of the annual total expenses for 4 years as your education goal.
• 2 years at a community college then 2 years at a college or university. Enter the full cost of a college or university for 2 years.

If you see yourself travelling in retirement, setting a separate Travel goal will help you stay on plan in retirement. It will also make estimating your retirement living expenses a little more straightforward. A Travel goal may mean several big trips per year or a combination of 1-2 big trips along with several smaller weekend trips throughout the year.

We’ve provided a few sample itineraries and associated costs.

Enter an “Elder Care” goal if you anticipate needing to cover another family member’s care (sibling, parent etc.) Do not enter expenses for a nursing home for yourself. We will conduct a long-term care analysis in the planning process. To determine your cost of an Elder Care goal, use the table below and subtract any income the family member receives or will receive (e.g. social security benefits, pension, etc.)

Tip: Elder care services are used for an average of 3 years.
Source: US Department of Health & Human Services

For a new home or vacation home, enter the amount of the expected down payment.

• CLIC Client Organizer Overview Guide
• Adding Accounts to CLIC
• CLIC Client Mobile Access
• Website Security Overview
• Account Connections: Guide to Common Issues