Transition Planning and Guidance, LLC
Niv Persaud, CFP®, is the Founder of Transition Planning & Guidance™, LLC. Life is more than accumulating money – it’s about living the lifestyle you envision and can afford. Over the years, life has become more complicated. What used to be normal expectations have shifted. We’ve redefined many long-held ideas about lifestyle and retirement.
For that reason, when Niv helps clients she looks beyond money. She incorporates all aspects of life. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor.
Niv developed the 5 P’s of Life (Personal Relationships, Personal Finance, Profession, Peace of Mind, and Physical Health) to help clients define what they want from life. Once she understands their vision, she can help them save for their lifestyle.
She is frequently quoted sharing her insights on money and life. She has been quoted in Forbes, Reuters, CNBC, Money, and USA Today.
Niv has over 20 years of business experience as a strategy and finance executive. Her work history includes firms such as Korn/Ferry International, Northern Trust, Merrill Lynch, and Commerzbank AG.
She attained her Certified Financial Planner™ professional designation in 2005. She also holds a Chartered Retirement Planning Counselor℠ designation and a Certified Divorce Financial Analyst® designation. She graduated from Georgia Institute of Technology with a Bachelor of Industrial Engineering which established a strong foundation in her analytical and business skills.
Niv actively gives back to the community through her volunteer efforts. She is Chair for the Financial Planning Association of Georgia. She is a Board Member for Zoo Atlanta and for CCT-Atlanta (a nonprofit organization providing management consulting to other nonprofits). Historically, she served on the Georgia Tech Women Alumnae Network Board and the Georgia Tech Women Resource Center Advisory Board. She has held leadership positions with her church which has over 2,500 members.
Niv believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often -- even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me’.”
Fee-only | retained basis
Congratulations on beginning to save AND on graduating! With saving for retirement your primary objective, you really need to work with a CFP® to develop a financial plan focused on retirement. Unfortunately, due to regulations we cannot give specific investment advice.
Start saving in a regular savings account until you have a financial plan developed. If your bank has financial advisors, schedule a meeting with them.
Before giving any investment advice, they will require you to complete a risk assessment. Once they have this information, they'll put together an investment plan using mutual funds and ETFs to meet your risk profile.
You'll need to save a lot to make up for the missed years, however, your plan to invest 50 percent of your income may meet your needs - the financial plan will calculate that information for you. You may need to save money in both a retirement account and in a regular taxable account (retirement accounts have limits on contributions). Congratulations again on your new financial focus!
Your Social Security benefit is based on your 35 highest earning years. If you've worked less than 35 years, then zero will be included in the calculation. For each year of deferral from age 62 to age 70, there is approximately a 7 percent increase in benefits. If you visit your local Social Security Administration office, they can review your options.
Here's a quick calculation to let you see what living off of $250,000 may look like in retirement. My assumptions are a 5% growth rate, 2.5% inflation, and 1% fees. Also, I assumed retirement begins at age 70 and ends at age 100. Using these assumptions, one could withdraw $12,675 annually starting at age 70. Money runs out at age 100.
Factor in your Social Security benefits to see if you could live off of that combined income. Keep in mind your expenses will increase during retirement (look at how expenses changed in the last 30 years).
You'll need to work with a CFP® professional in person for specific investment advice. Ask for options using mutual funds, bonds, and annuities with guaranteed payouts. When comparing proposals, review the assumptions. When planning for retirement, I prefer keeping growth rates conservative.
As a Registered Investment Advisor with the U.S. Securities and Exchange Commission (SEC) and in compliance with FINRA (a not-for-profit organization authorized by Congress to protect America’s investors), I am limited on what I can advise to non-clients regarding investments. For this reason, you'll see many registered financial advisors respond vaguely to your question (I'm sharing this information because many people are unaware of the regulations we have to follow). I recommend you hire a Certified Financial Planner (CFP®) to perform a retirement readiness analysis. Since you'll spend at least 30 years in retirement, segment this part of life into 3 phases: active retirement years, moderately active retirement years, and non-active retirement years. Having these three segments will allow you to decide which allocation to use for each period. Your non-active retirement years will be at least 20 years down the road. Therefore, you'll have more time to invest for this part of life. The key to any retirement analysis is understanding how you spend money. Many people will spend more money during their active retirement years then money begins shifting to health care expenses. It's best to test drive how much you think you will need for retirement before you actually retire. Many people miss expenses and realize they've underestimated how they spend.
Congratulations on wanting to pay off your credit card debt! Before you begin, address your spending habits so you don’t end up in the same place. Many times, people will dip into savings or transfer to a lower interest credit card without addressing the real issue – their spending.
Also, when you pay off your credit card debt, commit to paying in full every month any new credit card balance. In this way, you’ll ensure you pay attention to your spending.
As for using your savings, what was your objective when you started your savings account? If this money is your emergency reserve, then what will you do if you had an unexpected emergency (e.g., loss of job, car repair, home repair, etc.)?
It’s easy to shift money from one area to the other, but it’ll be an endless game until you address your spending and develop an overall financial plan to achieve the lifestyle you envision. Click this link to read more helpful hints in tackling credit card debt: http://www.transitionpg.com/tackling-credit-card-debt/.