Steve Hansen is a certified financial planner with Hornor Townsend & Kent in San Diego.He has worked in financial services for 25 years, with early experience in mortgage lending and life and disability insurance.
In addition to managing a financial planning practice, Hansen
has spent much of his
career teaching money management and retirement planning classes for schools and corporations.He serves on the board for the San Diego chapter of the Financial Planning Association and is a member of the Foothills United Methodist Church finance committee.
...The association chose Steve Hansen, a certified financial planner with Hornor Townsend & Kent in San Diego, to work with the couple and make recommendations.
In exchange for sharing their story in the newspaper, the Littens
received a comprehensive plan at no charge.
After an initial review of the Littens'
was able to reassure them that without question they're on track with retirement plans, and that an earlier retirement is a good possibility.
In fact, the Littens
have been so good at saving that Hansen's first recommendation was that they consider backing off from their 401(k) contributions.
are very investment-oriented people, and they've done all the right things," Hansen
told the couple that their estimate is a good number to start with, but that it might be too tight of a retirement budget to support their lifestyle, particularly when factoring in annual cost-of-living increases.Even though the Littens
are helping one of their two daughters attend community college, Hansen
asked them to consider future expenses such as helping their daughters pay for their weddings and the eventual purchase of new cars. He
also asked them to consider the purchase of long-term care insurance as a way to protect assets in late retirement.
Based on the Littens'
estimated retirement expenses and the cost-of-living inflation between now and then, Hansen
estimated that their income needs at age 65 will be about $120,365.
"Even with the annual deduction of $16,000, the Littens
have been really aggressive with their investments," Hansen
said."With a moderate growth rate of 5 percent and an estimated 4 percent annual inflation, I was able to show them that their savings will carry them through from the retirement age of 65 to at least 89." The Littens
could retire early if they wanted to, but Hansen
said the timing would really be determined by their actual retired expenses, their portfolio growth and additional income sources such as real estate.
To help stabilize their portfolio growth in preparation for whenever they decide to retire, Hansen
recommended that they diversify toward more stable large-cap, balanced and limited-term bond funds for less volatility and more moderate growth.
"For the first 20 years, the Littens
went for the most aggressive thing they could," Hansen