Envisioning retirement through investment planning
A widow in Fort Wayne, Indiana, credits investment planning for helping her maintain a modest retirement — even amid COVID-19.
At 81, Judy Walker has seen a lot and, like most people during these challenging times, isn’t certain about what the future holds. But the former member of the U.S. Olympic fencing team in 1956 and 1960 believes this: Planning for her financial future has helped her feel more prepared for retirement.
She said one turning point came in 2013 when she went through the Envision investment planning process of Wells Fargo Advisors with her Financial Advisors Jenny Radke and Mike Lundin in Fort Wayne, Indiana.
An interactive tool that adjusts to market moves and changing conditions, the Envision® process allows clients to see the potential impact on their finances for 20 years or longer and evaluate a host of “what ifs.”
By knowing where her “dot” is — the plot on a dynamic graph showing her the value of the current assets included in the Envision plan — Walker can track whether she’s above or below the Target Zone.* She meets regularly with Radke to review her progress.
So far, Walker said, the pandemic and stock market volatility haven’t derailed her retirement.
“I just stick to my budget and lifestyle,” she said. “Money and the desire to have things are not big drivers in my life.”
Since Wells Fargo Advisors launched the Envision process more than a decade ago, its financial advisors have used the process to help clients like Walker plan for retirement and more than 1 million other life goals.
Kim Ta, head of client service and advice for Wells Fargo Advisors, says about 444,000 of the households it serves have active Envision plans.
“The earlier you can start planning financially and envisioning the future, the better.” — Judy Walker
“Wells Fargo Advisors has been in this planning and advice space for a very long time, so we’ve had the planning tools and personalized advice investors are seeking — especially now with the pandemic’s uncertainties and increasing concerns about outliving retirement income,” Ta said.
“What the Envision planning process does is center these conversations on what matters most to clients — not market returns, but their ability to achieve life goals,” Ta said.
Ta said the latest Wells Fargo Retirement Study, conducted by The Harris Poll for Wells Fargo, underscores planning’s role in how investors feel about their overall financial health. According to the study, those with specific financial plans indicated they save more for retirement, tap emergency sources less, and feel more in control of their finances and less stressed than those without the “planning mindset.”
“It is amazing the difference it can make when a client sees what the reality is and has a plan to help guide them,” Radke said.
“The earlier you can start planning financially and envisioning the future, the better,” Walker said.
* The Target Zone graph is based on a client’s investment strategy aligning with the recommended asset allocation.
Important: The projections or other information generated by the Envision program regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Envision methodology: Based on accepted statistical methods, the Envision tool uses a simulation model to test your Ideal, Acceptable, and Recommended Investment Plans. The simulation model uses assumptions about inflation, financial market returns, and the relationships among these variables. These assumptions were derived from analysis of historical data. Using Monte Carlo simulation, the Envision tool simulates 1,000 different potential outcomes over a lifetime of investing varying historical risk, return, and correlation amongst the assets. Some of these scenarios will assume strong financial market returns, similar to the best periods of history for investors. Others will be similar to the worst periods in investing history. Most scenarios will fall somewhere in between. Elements of the Envision presentations and simulation results are under license from Wealthcare Capital Management LLC. © 2003-2020 Wealthcare Capital Management LLC. All Rights Reserved. Wealthcare Capital Management LLC is a separate entity and is not directly affiliated with Wells Fargo Advisors.
Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker dealer and non-bank affiliate of Wells Fargo & Company. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company. CAR-1120-00061