Over the last few weeks I had a lot of phone calls with prospective clients.
I’m noticing with a lot of the folks I’m speaking to, they are falling prey to this phenomenon called “Analysis Paralysis”.
Searching high and low. Researching anything and everything retirement planning.
In other words, searching for the silver bullet…in the hope something that relates will lead to some action.
The reality is there is so much information, so many competing opinions and a magnitude of options.
It very quickly becomes overwhelming, confusing and frustrating to decipher all the information.
The only natural response is to do nothing, maintain the status quo…
Frozen by the magnitude of options and still no clear answers.
One guy I had been speaking to, had been researching his retirement options for the last 6 months. I could only imagine the hours he’d spend on this…
Yet no action had been taken…
It’s likely it’ll continue for another six months.
Don’t get me wrong. You should do your research. Get yourself familiar with the retirement landscape.
More often than not we find this leads to inaction…time passes by quickly and then retirement is there with years of wasted time and no action.
It doesn’t have to be that way for you…
As you head towards retirement, it tends to heighten this tendency.
Now is not the time for inaction…inaction will have financial consequences.
The last thing you can afford to do is make a major mistake…
Would you pilot your own plane?
So you’re planning an overseas adventure, something you’d be thinking about for years. You’ve done all the planning.
You can’t wait for it…
Are you going to go out there and get your pilot’s licence so you can fly the plane?
In fact, it’ll take you many years and cost you hundreds of thousands of dollars.
I think not…
You’re going to board the plane…sit back…pick your first movie and order a champagne or glass of wine.
Retirement planning is not different…
You may not have the expertise to pilot your retirement.
How far down the rabbit hole will you go?
Google can be a great resource…need anything, you just google it.
Don’t get me wrong, I love google…
But when it comes to retirement you could literally spend years down that rabbit hole. You may never make it out.
We’ve seen people spend years researching their options.
When they could have simply sought advice. Got the answers they needed and got back on with living life.
They’d be further ahead and never spend a minute longer wasting their precious time. More importantly they could get back to living life.
Have you ever thought about how this is costing you financially?
Noise is your biggest enemy…
In times of turmoil, headlines run rampant. More now than ever.
It’s a little like a buzzing noise that never goes away. The financial services media channels are just that…noise. Or as I call them “financial pornography channels”.
It’s hard to believe…it has the ability to freeze you for years.
When the noise is heightened, you’ve got to go back to the basics.
Block it out and follow a well trodden path and process to keep you on track. No matter the noise you’re hearing.
It’s not easy, but if you know what you are doing, it will keep you on the right path.
Cost of inaction…
The decision to make no decisions and therefore take no action is your opportunity cost. It’s the cost of not making your money work for you and more importantly, MOMENTUM…
That very cost, like investing, compounds over time.
Unfortunately we see this far too often.
How do you overcome analysis paralysis?
Is a lot easier than you think…
But you need to break it into steps.
Block out the noise.
Use a process that takes the emotion out of your decision. Hard, but it can be done…
Take small steps…often.
It all starts with the vision you have for your retirement. Even if you don’t have a vision, dream up what life would be like when you no longer have to work.
Maybe it’s weeks and months travelling in your caravan. Time is no issue…
More time for your interests and hobbies.
Time with family and friends.
Or maybe it’s choosing work you love rather than working because you have too.
What vision do you have for your retirement?
Know your numbers…
What is your retirement lifestyle going to cost?
Sure this may seem simple. But many leave things out and underestimate what their retirement lifestyle costs.
What assumptions are you using?
The danger here is we’ve had 10 good years of investment returns. The reality in the next 10 years is unlikely to deliver a similar result.
If you overcook your assumptions, you run the risk of running out of money in retirement.
You can’t afford to get this wrong…
Have you completed a long term cash flow forecast?
It’s the bedrock of a successful retirement. Cash flow is what is going to fund your retirement lifestyle.
Don’t you think you need to know what this may look like?
What’s your cash flow going to look like over your 30 or 40 year retirement?
This will allow you to understand how much money/super you need to have to finance your retirement lifestyle for the rest of your life.
Depending on your situation, there may be various scenarios you need to consider.
Just like a recent client we worked with…
Due to their situation they were weighing up whether they retired now, work part-time for a period or work full-time for the next five years.
All provide different outcomes, but one will be the one they are more comfortable with.
Once you go through this process, it’s about eliminating the options you have available to you.
From the super contributions you take advantage of to the investment strategy you adopt.
Understanding the pros and cons, the impact on your retirement and what you are comfortable with.
Lights, Camera, Action…
If you have done a thorough job, you will be left with a robust roadmap.
One based on research and facts.
One you can back when you need a backup plan rather than becoming a victim of financial noise.
You’ll need to repeat this process on at least an annual basis.
Nothing stays the same.
Your life changes, the world changes, legislation changes and investment markets change.
It’s a constant battle to stay on the right path.
More importantly, taking the right action is your secret superpower…
So often we see people sit there…frozen with fear. They fail to take action.
While sitting on the sidelines it’s great when you are supporting your favourite sports team.
In real life you need to take action if you really want to enjoy a long enjoyable retirement.
It’s as simple as that…
Even when things don’t seem right…
Analysis paralysis is a very real and dangerous phenomenon…
It can prevent you from achieving a comfortable retirement. It all can be avoided with a proven process, thoughtful planning and methodical action.
Want an easy, less stressful way to plan your comfortable retirement?
It all starts with a quick phone call to discuss your current retirement challenges.
If you are struggling with putting your retirement roadmap together. Confused with the next steps you should be taking. Or more importantly not knowing how much you need for your comfortable retirement…
This call will help you very quickly know what your next steps need to be to achieve your comfortable retirement with less stress…
Don’t let “Analysis Paralysis” be your Achilles hill…
Email me at email@example.com or request a call by clicking here.
Glenn Doherty – CFP – Financial Planner | Helping people within 10 years of retirement achieve a successful retirement