In my experience as a financial advisor, I often find a disconnect between people’s money and their retirement plans
Some people have wild ideas about what their retirement should look like, but no money. Others have Scrooge McDuck style piles of cash, but no plans. Of course, it’s better to be in the latter situation than the former. But if I ask “What do you want?” and you don’t have an answer, then my next question will be “What are we doing here?”
I want to help you answer that question. That’s the ‘X’ on your treasure map, and by knowing your destination, I can help you plan the most realistic and enjoyable retirement possible.
Make retirement decisions as early as possible
There are difficult decisions to make when standing on the precipice of the autumn of your life, looking to turn the spigot of a paycheck off. Of course throughout all our lives our desires fluctuate, visions for our future change, and what is important to us also morphs.
As we enter retirement, the unexpected will still happen, but it’s extremely helpful to make some concrete decisions to work with. While plans may change, and your financial situation guides that course correction, your basic needs can be reasonably forecasted and planned.
What choices do you need to make about retirement?
When planning your retirement, think about things that will affect your daily expenditures such as:
- Where you live
- What you eat
- The lifestyle you want
These will be reasonably stable. Whether you’re on a boat, an island, or a hot air balloon, think about your basic living costs. We’ll use those costs to make educated decisions. How we consume and construct these things around our existence is what makes up our retirement plan, our ‘X’.
Once you have chosen your ‘X’, we can build a plan. If you are just free floating, waiting for something to happen or adopting the attitude of ‘it will all just work out,’ then don’t be surprised if ‘working out’ means going back to work.
Be realistic about your retirement plans
At 47 years of age the likelihood of me playing for an NFL team is pretty slim. (Bummer!) Is your ‘X’ just as ridiculous?
One of the toughest aspects of my job is telling people that they can’t have the retirement lifestyle they were hoping to live. Getting to the end of a life of hard work, only to find out you don’t have enough money to stop working, can be massively depressing.
Often by the time clients start working with me, I see that the location and timeline of their ‘X’ must change. I hate to be the bearer of bad news, but I have to be honest and offer some tough love.
Early planning and help from a financial advisor will provide more realistic expectations about how your retirement will look. My job is to make sure you have all the resources you need to get as close to your ‘X’ as possible.
Prepare for possible retirement pitfalls
Undoubtedly, you have concerns about aging—things like healthcare, access to healthcare, the location of your doctors, the need for long term care, etc.
If you adopt the attitude of ‘It won’t happen to me,’ then all the planning in the world is pointless. Throw away that treasure map! Having things in place such as long term care Insurance, pension payout options, life insurance, and accessible liquidity can be game-changers if the unthinkable happens.
A wise individual once told me “We do not buy insurance to win, we buy it not to lose.”
None of this can be MacGyvered at the campsite. Don’t try to plan what you’re bringing on the trail after you’ve started the hike! These pitfalls are much less catastrophic if you’ve prepared for them. That’s where I come in.
Of course, if every retirement plan I wrote planned for the person to have a catastrophic health event, everyone would go broke. Besides being morbid, this is a bit unrealistic. The point is that all of the things you need now, mostly, will be needed in retirement, and a financial advisor can help to make sure you don’t go hungry or get cold.
A financial advisor can help you look at your retirement realistically and get the most from your hard earned money
I recommend getting a map, placing an ‘X,’ and making a plan. Having a clear and mappable ‘X’ helps us to successfully put all of the pieces of your retirement plan together.
Better yet, get a financial advisor and mark your ‘X’ with the advisor.
