Creating a comprehensive wealth plan that actually determines your personalized range of comfort in the future – the space where you have peace of mind about your financial future – is the true value of the Wealthcare planning experience.
As part of the Wealthcare planning process, in which we help you design your personalized plan around your priorities in life, your Comfort Zone is defined for you. This is the place where your life and your investments meet in perfect balance, creating a confidence that you will achieve your goals.
Your personal Comfort Zone is the range of acceptable probabilities that your Wealthcare plan will be successful over your lifetime. Using Monte Carlo simulation, the planning model realistically assumes that your investments will be volatile in the future. In fact, the total return on your investments over your lifetime – taking into account when you stop saving and start spending - is the only variable factor in the planning model - all future investment performance is assumed to be random.
Your Comfort Zone is defined as a plan success range of 75% to 90%. Outside of your Comfort Zone are two places you can avoid: Uncertainty– asking too much of your investments; and Sacrifice – making needless compromises in your life.
As your Wealthcare advisor, our responsibility is to keep you in your Comfort Zone. As your life changes unexpectedly – for good or bad - we are there to discuss your options, recommend plan adjustments and offer planning advice to adapt your Wealthcare plan to your new situation.
Your Wealthcare plan is a living plan and through the concept of your personal Comfort Zone, it is continuously redesigned to help you live your life to the fullest.
