According to a survey by Charles Schwab, people spend more time planning their vacations than they do evaluating their retirement.
Why do so many people have their retirement priorities backward?
For one, it’s a lot more fun to plan a vacation than it is to think about retirement. Additionally, it’s a lot easier to plan a 2-week vacation than it is to plan for a 20-30 year block of your life.
In the first segment of this week’s show, the guys at Oakmont spend some time evaluating common reasons why people avoid retirement planning and the lasting impact it could have on your future.
Topics covered in this episode:
- [7:24] How might sequence of returns in the market affect my retirement? While there is no good time for a market downturn, it can be especially bad if it happens early in your retirement. We discuss how you can structure your portfolio to reduce market risk.
- [12:42] How will you pay for healthcare in retirement? Though some expenses will go down in retirement, others will probably go up… like healthcare. We asked some of our listeners how they’re planning to pay for their healthcare costs in retirement and their answers might shock you.
- [18:10] What are the downsides of the “set it and forget it” strategy? Changing goals, emotional responses, and sequence of returns, to name a few.
- [26:52] Why are people afraid to meet with financial advisors? Though many fear a financial advisor will make them feel stupid, we prefer to educate our clients and help them understand their financial position.
- [33:42] Why don’t more people complain about the fees they’re paying on their retirement accounts? We share why people don’t understand the fees they are paying on their accounts.
- [40:13] How do we come up with a more accurate idea of how much we’ll need in retirement? With 46% of us just guessing about how much we’ll need, it’s time for a change.
- [44:46] How can you make your income last as long as you do?