The fact is, returns on the equities markets may not get back to the levels experienced in the 1980s and 1990s. And the US today has $16 trillion worth of debt. Advisors also should be focusing on separating goals for sustaining basic necessities like shelter, food, and clothing from goals based on optional things like being able to travel during retirement.
 
Separating these goals and prioritizing them can help clients plan specifically for goals they need to achieve and for other goals they simply want to achieve. Some of the goals in the wants category may have to take a back seat to those in the needs category.
 
Even if a client has $10 million, he or she may be viewing the wants as necessities. Country club memberships, health club memberships, manicures and pedicures all fall into this category. Helping clients realize that, no matter the amount of assets they have, they can easily run out of money during retirement if they do not plan wisely.
 
The traditional 60/40 allocation may not be sufficient, either. Families who have built their wealth through a business they own have done so most likely through a concentrated position. Holding concentrated positions may not be all bad. They can be counterbalanced in other ways.
 
Since few are experiencing traditional retirements and there will be more retirees than ever before, it makes sense to adjust retirement planning to fit the new retirement paradigm.

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