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Investment Adviser Liz Adams on Prioritizing Your Retirement Goals

3 min read

Liz Adams is a native of New York City. Her father worked for IBM, and she grew up in Lubbock, Texas, and Shreveport before her family settled in Little Rock in 1968. Adams has been with Raymond James Financial Services Inc. since 1998. She served on the Arkansas Independent Living Council from 2010 to 2015, including two years as chair. Adams was elected to the Maumelle City Council in 2006 and served through 2010. This year, she was elected to the Camp Mitchell Board of Trustees.

Earlier this year, Adams partnered with another Raymond James adviser, Chris Baugh of Jonesboro, to form Baugh Adams Financial Services in Little Rock under the Raymond James umbrella.

Do most Americans take retirement planning for granted?

No. Do they have their head in the sand? Some do.

Retirement planning has several facets. Do you faithfully stick to a budget? Do you control your debt? Does your employer provide a retirement plan? If not, do you fund an IRA? Are you maximizing your contributions? Do you save outside of allowed plans? Do you have a spouse? Children with current or future college plans? Will you “age in place”?

In your experience, are people now saving less, and if so, why do you think that is?

The people I serve or counsel save more. Many of them have come to understand the core importance of a budget of needs and wants that must be supported by monthly cash flow. They also realize that our financial plan is a living document geared for current and future goals and potential detours.

Prioritizing for retirement goals is imperative to their success. How much money in current and future dollars will it take to operate “You Inc.” in retirement? What are your sources of income? When will you stop working, and will you work part time? MIT’s AgeLab asks questions regarding “aging in place,” such as, “Do you have stairs and accessible bathrooms?” and “How will you get around independently?” (for example, I have MS and use hand controls on my car) and, “How will you socially interact?” That can include lunch with friends, golf, travel, book clubs and volunteering. I believe in weekly social schedules to keep the mind and body engaged and vibrant. All of these questions are important and need to be addressed in all retirement discussions. Overlaying the money picture with the life questions posed above are what I strive to uncover in my work.

Explain the importance of succession planning, especially for a financial planning business.

My practice management colleagues at the Raymond James home office introduced me to Chris Baugh, another RJ adviser in Jonesboro. The average age of financial advisers is almost 51. I’m 62, and my new partner Chris is 41.

After meeting and studying for three years, we formulated a gradual succession plan for my retirement over the next four to six years, mainly because I still enjoy my work with my clients. Utilizing a longer time table allows Chris to get to know my clients’ goals and challenges, as well as the nuances of their families and businesses. We also have a catastrophic succession plan in place in the event of death or disability of either party. Another benefit of our merger and succession planning is the focus we bring to our investment process and models.

The $64,000(,000) question: How much should we be saving?

In a perfect world, 15 to 20 percent of your income.

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