If you’re nearing retirement and there was one mistake you could correct that would improve your chances, would you want to know what it was? Probably! According to The Street, the most common mistake people are making is failing to have a plan.
We’ve said it before, but we’ll say it again… you need to have a retirement plan. In our first segment of this week’s show, we share why creating a plan is much more involved than you might think.
Does your retirement plan grow with you? Does it make mid-course corrections? Does it account for more than just a savings plan? If not, you’ll want to tune in.
Here’s what you’ll learn from this segment:
- [1:34] When we need a haircut, we visit a barber. When we need help with our lawn, we hire a landscaper. Generally speaking, when we need help, we hire an expert, because it makes our lives easier. Why is it, then, that so many people hesitate to seek help from a financial planner?
- [3:52] Some believe they can sit down, talk about their intentions, and call it a retirement plan. It’s much more involved than that. Ralph identifies the one dozen plus items your retirement plan needs to account for.
- [6:08] Is retirement planning a task you can realistically handle on your own?
More key takeaways from this episode:
Why people dread financial planning
- [9:31] One in four people surveyed by Goldman Sachs said they’d rather go to the dentist than deal with their financial planning. Why do so many people dread it so much?
- [10:37] Is your pride getting in the way of your retirement success? Often times, we find that people are too prideful meet with an advisor and admit they have no clue what they’re doing.
- [13:10] Having a random assortment of investments is NOT a financial plan.
Planning for the future when we don’t know what’s in store
- [18:00] Mick Jagger is 75, a vegan, and works out 3 hours a day. On the other hand, Keith Richards is 75, not a vegan, and well, the pictures speak for themselves. Guess who ends up having heart surgery? Mick! This just goes to show that none of us know what’s in store when it comes to our health and other areas of our life that might impact our financial future. How can we be prepared?
- [20:35] When you slow down and take a deeper look at your future, more specific concerns start to surface.
- [22:03] When it comes to your longevity, your attitude matters.
What should you look for in a financial advisor?
- [23:00] It’s human nature to want to work with someone you like, but that’s not enough. In fact, if likability is all your advisor has to offer, that’s a problem.
- [26:00] You want your advisor to be likable, but you also want them to be honest. Ralph discloses some of the hardest, most honest conversations we’ve had to have with our clients.
Can you trust Consumer Price Index charts?
- [29:03] According to an article in Forbes, you can’t rely on government inflation numbers when developing retirement and spending plans. The guys share why you should assume your inflation rate will be higher than predicted.
Estate planning pop-up clinics
- [34:05] Attorney Matt Danner explains how his upcoming Estate Planning Pop-Up Clinics eliminate some of the barriers that prevent people from creating an estate plan.
Do you need a financial plan if you don’t plan to retire?
- [44:14] People who don’t think they’ll ever retire often don’t take the time to create a plan. This can be a huge mistake! The guys discuss why you should make a plan with “What If?” scenarios just in case you should need it.
The American Dream is changing
- [47:20] The “American Dream” used to be having a nice long career and saving enough to retire at 65, without ever having to worry about money again. It’s not that simple anymore. Your retirement is not your parents’ retirement, and your longevity isn’t the same either. The guys share advice on achieving the new American Dream.
Links mentioned in this episode:
- Keeping Finances at Arm’s-Length? You’re Not Alone
- The Big Retirement Planning Mistake You Want To Avoid
- A “New Era” Of Retirement: This Is What It Means For You
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