Sep 22, 2017
Learn how to save for retirement with a thorough and thoughtful
Main Questions Asked:
- What are some of the fallacies of fuzzy math in retirement
- What do I need to know about this fiduciary rule?
- What is a good financial planning process for retirement?
Key Lessons Learned:
Retirement Planning Fuzzy Math
- You can’t evaluate your investment strategy based on the last
five years returns because there was no downturn in that
- When you take money out of a portfolio, the return is not
linear because the down years are amplified when you are making
- Your sequence of returns can make a huge difference in your
- A portfolio that’s designed for growth requires a completely
different mentality than a portfolio designed for preservation and
- The problem with waiting until the age of 70 before drawing
social security is that it assumes you don’t have any other assets.
For many people, it is better because the checks are bigger, but it
depends on your life expectancy and other money.
- You may need more income in retirement than you do now. It is
also still a good idea to still save and give yourself a 3% raise
- There is a high probability that you won’t run out of money if
you take 4% out, but it’s not guaranteed. You don’t want to gamble
with your savings and rates of withdrawal.
- Some financial advisors have not had to act like fiduciaries,
as they were held to a lesser suitability standard. All they had to
do was not hurt you, but they weren’t required to act in your best
- Now all financial advisors that make recommendations on
retirement accounts are held to a higher fiduciary standard.
- It’s a good thing. All advisors should be held to a higher
standard and act in your best interests.
Financial Planning Process
- You want an advisor that is focused on long term planning and
the products they recommend are tools in the process.
- If your financial advisor makes product recommendations very
early in the conversation or is pushing certain products, they may
be biased for those products.
- If your advisor doesn’t gather a lot of information about you
and your goals and what has gone wrong and right and what is your
biggest concern, they may be just pushing product.
- If they only point out the bad things in your portfolio and all
the good things they do, this could be a product pushing clue.
Joel’s Financial Planning Process
- The planning process begins with a call for an appointment.
Then a call back and the time for a visit is set. The staff also
gathers general information.
- Then the advisor spends about an hour trying to get to know you
and see if we are a good fit for you.
- After the first visit, a one page plan is put together. There
is also backup and risk analysis and estate planning.
- Then the plan is shared with you, and we take a lot of time
making sure that this is the plan for you and this is what you
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!