Apr 12, 2019
Retirement doesn't have to be overwhelmingly complicated.
There's beauty in simplicity, and sometimes, we tend to make
retirement planning harder than it needs to be.
What You'll Learn:
00:42 – A fun fact of the week.
3:21 - Why some advisors make things harder than they
need to be.
- Some advisors want to make themselves seem smart, and others
just aren't able to communicate clearly. Regardless, your advisor
should be able to explain concepts to you in a way that's easy for
you to understand. They should help bring simplicity into your
5:03 - What you can do to add simplicity to your
- Gather your accounts. It's easy to think you're diversified
because you have accounts with different financial firms, but
you're not, and all those statements tend to get cluttered
6:42 - What tends to be the most
- Insurance policies are all sorts of confusing, especially if
they're outdated. They're exceptionally complicated, and if you
don't understand them, they can get you in trouble. The same can be
said for mutual funds. If you don't understand what's in those
funds, you can end up with a lot of unnecessary overlap.
9:27 - How to better understand your financial
- Your financial plan should
give you a clear picture of your finances. You should be able to
see where your money is and how it's performing. Getting a clear
picture will help to add simplicity to your financial future.
14:45 - Watch out for half-truths.
- In the financial world, there are a lot of half-truths. It's
not that brokers and advisors are always trying to lie to you, it's
just that sometimes you miss out on the whole financial
15:07 - The problem with paper losses.
- Sure, those losses are only on paper, but they're still losses,
and you still lose money once you withdraw from your account. As
you get close to retirement, you can't afford to suffer market
losses. While the market does go up over the long-term, it can hurt
you if you don't have time to wait.
17:22 - The trouble with fees.
- There are all sorts of fees in your portfolio, and you might
not always realize they exist. You need to track down your fees,
and understand what you're paying for your investments.
18:49 - Interest rate math.
Your advisor might tell you that because interest rates are low,
you should invest your money rather than using it to pay off your
mortgage. This logic is sound, but it doesn't necessarily mean
everyone should follow that strategy.
"It's safer to be a client who admits they don't understand
something that they own versus a client who thinks they understand
it and they don't." - Joel Johnson
ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti
For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/the-beauty-of-simplicity/